Bitcoin price analysis: BTC/USD settles at $7,800 - change of sentiment of dead cat's bounce?
|- Bitcoin skeptics don't take the bait, claiming that the move is just a correction.
- BTC/USD bulls have to take the price above 61.8% Fibo to prove that they are serious.
On Thursday Bitcoin registered the largest intraday gain since February 6, trading above $8,000 handle for the first time in two weeks. While crypto enthusiasts rejoice, claiming that yesterday's move signals a significant change of sentiments that will take Bitcoin "to the moon," many experts remain cautious.
To put the surge into perspective, Bitcoin is still 44% lower than at the beginning of the year and over 60% lower from its peak, reached in December 2017. It gives some weight to the arguments that Thursday's rise is a function of speculative positioning and technically induced move where a break above $7,000-$7,200 redoubled the momentum.
In the broader scheme of things market remains in a downtrend, and while the picture has improved, it is still too early to claim that the worst is over.
Bitcoin price technical picture
BTC/USD touched $8,086 on Thursday, but the upside stopped short of 61.8% Fibonacci retracement level. The price needs to break above this stiff resistance to gain upside momentum and climb higher towards $8,200 (50-EMA, daily chart), $8,700 (200-EMA) and $9,200 (100-EMA). The downside trendline is broken, but we need further sustainable move higher to confirm the breakout. The support comes at $7,500 (former resistance) and $7,200.
BTC/USD, the daily chart
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