- Calm in the Middle East sees stock markets stabilize as Bitcoin, gold and oil bleed.
- Bitcoin returns under $8,000 but the bulls focus on the journey to $9,000.
Bitcoin price is trading significantly higher compared to the lows recorded in December at $6,500. The rejection from the recent high at $8,464 has dealt a blow on the surge from the support established at $7,800. Similarly, the trajectory towards $9,000 is also facing setbacks amid the bearish and volatile cryptocurrency market.
An observation of the daily chart reveals Bitcoin facing a strong line of resistance that has been descending against the uptrend since the highs posted last June around $13,800. Also contributing to the reversal is calm in the Middle East.
BTC/USD daily chart
Although Iran retaliated against the US by sending a dozen missiles against a couple of US military airbases, the US President, Donald Trump said that all is well as there were no casualties. Trump added that Iran seems to be backing down while emphasizing the military prowess of the United States.
As the tension eases between the two conflicting nations, the stock markets are beginning to stabilize. However, Bitcoin, oil and gold are posting losses, a direct indication that investors are moving their funds back into the stock market.
Bitcoin confluence levels
As far as confluence support and resistance levels are concerned on Thursday, Bitcoin is strongly supported. The initial support at $7,871 is home to the previous low one-day. It is followed closely by the support at $7,789; an area highlighted by the previous month high, pivot point one-day support one and the Bollinger Band one-hour lower. The most significant zone with the highest congestion of buyers is $7,295 while other key support zones include, $7,130 and $6,966.
Although the recovery towards $9,000 is facing setbacks, they are just but temporary. The path above $8,000 remains relatively smooth with minor resistance hurdles at $8,118, $8,529 and $8,612.
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