Tanya Abrosimova
Independent Analyst
- BTC/USD has recovered above critical support area.
- The next resistance awaits BTC on approach to $7,600.
Bitcoin hit the low of $6,526 earlier this week; however, a cluster of stop orders cushioned the decline and helped engineer an upside recovery to the area above $7,000. At the time of writing, BTC/USD is changing hands at $7,476, off the recent high of $7,676. The first digital coin has lost about 1.5% since the beginning of the day and stayed unchanged on a day-to-day basis.
Bitcoin's long-term picture
Looking technically, after a short-lived collapse, BTC/USD has recovered above 61.8% Fibo retracement for the entire upside move from $3,226 low to $13924 high. Located at $7,350, this line serves as a pivotal support that separates BTC from a deeper decline towards $5,000 reinforced by SMA200 (Simple Moving Average) on a weekly chart. Note, that the price attempted to break below the above-said Fibo retracement at least four times since May 2019. It means that it is going to be a hard nut to crack for the bears.
On the upside, we will need to see a sustainable move above the recent high at $7,676 to improve the technical picture and allow for an extended recovery towards $8,000. This psychological barrier is followed by $8,400 with SMA50 daily located just above this handle. Once it is out of the way, the upside is likely to gain traction with the next focus on $8,600 (50% Fibo retracement).
BTC/USD, 1-day chart
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