Bitcoin Price Analysis: Bulls gathering pace for a test of $8,000
|- Bitcoin extends recovery gains, $7,500 mark tested.
- Bullish reversal displayed on daily chart, calls for further upside.
- BTC/USD rises for the first time above 50-DMA since Nov. 15.
The BTC buyers are back this Sunday with great pomp and show, after a brief phase of upside consolidation seen on Saturday. Bitcoin (BTC/USD), the most favorite cryptocurrency, attempted to take out the 7,500-handle last hour, having resumed its Friday’s recovery momentum. At the press time, the spot reverses from weekly tops of 7,491.15 to trade near 7,450 region, gaining 2% over the last 24 hours while up nearly 1.50% on a weekly basis. Its market capitalization increases to $136.16 billion vs. $ 133.73 billion seen during Saturday’s mid-European hours.
Markets remain optimistic on the No. 1 coin despite the major US-Iran geopolitical escalation that led to a big wave of a fight to safety across the financial market on Friday.
Technical Overview
BTC/USD daily chart
As observed in the daily chart, the price witnessed a bullish break out from over a month-long falling channel earlier today. Its also worth noting that the coin regained the 50-day Simple Moving Average (DMA), now at 7,348, for the first time since November, 15th.
Therefore, a bullish reversal can be called for, as the bulls now eye a test of the downward sloping 100-DMA located at 7,953. Buying interest will intensify on a break above the 100-DMA, opening doors towards the pattern target of 8,820. Moreover, the daily Relative Strength Index (RSI) remains above the mid-line, pointing northwards while suggesting further scope for upside.
On the flip side, any retracement is likely to be initially capped by the 50-DMA resistance-turned-support. Should the bulls fail to defend the last, the price could drop further towards the horizontal 21-DMA placed at 7,204.
All in all, the BTC/USD upside looks more compelling in the coming weeks amid bullish technical set up.
BTC/USD key levels to watch
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