- Bitcoin has maintained trading within an ascending channel since the recovery from $5,800 support began.
- The trading over the weekend broke above $7,300 and formed highs of $7,335.79.
- Bitcoin is strongly supported at $7,000 and $6,800 zones.
Bitcoin has maintained trading within an ascending channel since the recovery from the primary support at $5,800 in the second week of last month. After blasting its way above $6,000, the uptrend faced significant resistance at $6,400 before the breakout that spiked above $7,000. In the previous analysis, Bitcoin had dropped below $7,000 but remained strongly supported at $6,800.
The bulls have no intentions of slowing down until they reach $8,000 in the medium-term. The trading over the weekend was not mundane at all. Bitcoin retraced above $7,000 and cleared the resistance at $7,300. However, it began trimming gains on trading highs of $7,335.79.
At present, the largest cryptocurrency by market capitalization is changing hands at $7,236. Applying Fib levels, it shows that BTC/USD is supported at the 50% Fib retracement level with the last high leg of $7,707.14 and a low leg of $5,897.64. The 4-hour 50 simple moving average is also supporting the price at $7,000. The bullish trendline will also prevent declines towards $6,800.
Bitcoin buyers have their eyes set on $8,000 but in the meantime, they must clear the resistance at $7,335 and $7,400. The range at $7,800 -$7,900 will be a significant hurdle as well. Looking at the chart lower corrections are imminent in the near-term. Significantly, the buyers must not allow a slide below $7,200 which could break down further towards $7,000.
BTC/USD 4-hour chart
Get 24/7 Crypto updates in our social media channels: Give us a follow at @FXSCrypto and our FXStreet Crypto Trading Telegram channel
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Ethereum fees drops to lowest level since October, ETH sustains above $3,200
Ethereum’s high transaction fees has been a sticky issue for the blockchain in the past. This led to Layer 2 chains and scaling solutions developing alternatives for users looking to transact at a lower cost.
Solana, Base and AI meme coins rally, are speculative tokens making a comeback?
Meme coins are typically considered more speculative than the rest of cryptocurrency categories. Despite the label, hedge funds and institutional investors have warmed up to meme coins this cycle.
RWA narrative could make a comeback after nearly 50% correction in CFG, ONDO, MKR
Bitcoin halving and developments in the AI sector are the key narratives this cycle. The Real World Asset (RWA) tokenization narrative gathered steam with BlackRock’s tokenized asset fund launch on Ethereum in March 2024.
These cryptocurrencies could face selling pressure according to an analyst: STRK, ENA, OMNI, JUP, ONDO
Thor Hartvigsen, investor at Heartcore Capital and a crypto analyst has identified a list of cryptocurrencies that are expected to see a massive increase in their supply. Typically, an increase in selling pressure negatively impacts an asset’s price.
Bitcoin: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s (BTC) recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.