Bitcoin price analysis: BTC/USD stays above $7,000 dominated by short-term traders

Bitcoin has settled above $7,000 handle during weekend and gained 1.3% on a daily basis. However, the bulls might find it increasingly difficult to move the price further to the North as the momentum has faded away due to strong technical resistance right about the current price. BTC/USD is changing hands at $7,274 at the time of writing, of the intraday high registered at $7,324.

From the longer point of view, the digital coin No.1 continues trading within a wide range limited by $5,800 on the downside and $8,500 on the upside with no strong direction that might have caused a decisive breakthrough. The price swings and frequent turnarounds within a range signals that the market is driven by short-term speculative trading.

“Within our own team, we tend to believe the market is in an ultra reflexive state currently. It moves within a range in response to seemingly every bit of news. This is likely the result of trading having been dominated by short-term players that are using structured derivative vehicles with leverage to express intraday speculation,” Element Digital Asset Management experts explain. 

Bitcoin's technical picture

BTC/USD is supported by DMA50 at $7,050, followed by psychological $7,000. If this support area is cleared, the downside may be extended towards $6,894. (DMA100). The downside trendline at $6,700 is likely to stop the decline and trigger upside correction. 

Meanwhile, the bulls have to clear $7,400 to set things going. Once it happens, the upside may be extended towards $7,839 (DMA200).

BTC/USD, the daily chart