Bitcoin Price Analysis: Price holds above critical 7K zone but the resistance is still in the way
- Bitcoin trades 5.60% higher and above the pivotal 7K level.
- There is another hurdle that the bulls need to clear at 7292.11.
BTC/USD 4-hour chart
Bitcoin has pushed higher on the first trading day of the week as general sentiment in the crypto space has improved. Last week there was an interesting spike which has left a wave high resistance zone of 7292.11. If the bulls can take out this level then the rally would look set to continue into the next soft resistance of 7734.18.
There are some important technical zones around the current price point that need to be watched. First is the moving average potential crossover. The 55 EMA and 200 SMA are very close together at the moment and a cross of the smaller over the bigger is normally a bullish sign, but it can be a lagging signal. The red trendline has also been respected many times of a break might offer the contrary signal. Lastly looking at the RSI, the indicator has moved into oversold territory, which could mean BTC/USD is due for a short term correction.
Away from the traditional technicals, the market could be in a 5th wave high. For those of you that follow Elliott Wave Theory, this means the price might retrace and form a ABC correction before moving higher. That is not to say we are at the end of wave 5, but it is something to be aware of.
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Additional levels
Author
Rajan Dhall, MSTA
FX Daily
Rajan Dhall is an experienced market analyst, who has been trading professionally since 2007 managing various funds producing exceptional returns.
