BTC/USD: Bitcoin ready to yield to bullish pressure

BTC/USD is ready to follow the lead of major altcoins.
A move above $8,000 will open up the way to $8,750.

Tanya Abrosimova Independent Analyst

Bitcoin (BTC) is changing hands at $7,970. The first digital coin has gained 2.7% since the beginning of the day and 1.8% on a day-to-day basis amid growing bullish pressure. Bitcoin's market capitalization is $145 billion, which is 63.6% of all digital assets in circulation

BTC ready to yield to bullish pressure

As April is drawing to an end, traders are growing more confident in cryptocurrencies. The interest in digital assets is on the rise, according to Marcus Swanepoel, CEO Luno. Cryptocurrencies managed to hold or even improve their positions amid major collapse on the global markets, which adds credibility to this new class of assets.

We are seeing a lot of background interest in Bitcoin and Ethereum at the moment. Both coins have been trading in a range and keep threatening to break out to the upside. This morning we have seen ETH going through the significant US$200 level and BTC has moved above the strong US$7,800 resistance level. These moves have come late in the Asian session and we now have to wait and see whether the bulls will consolidate the positions.

BTC/US: Technical picture

Bitcoin is moving within an upside trend, while a sustainable breakthrough above $7,800 during early Asian hours confirmed the bullish momentum. However, $8,000 is still regarded as an inflection point for the first digital asset. On an intraday chart, the price has created several doji candles below the said resistance, which means the market is still hesitant. This barrier is reinforced by daily SMA100 and 61.8% Fibo retracement for the downside move from February 2020 high.

A sustainable move above this area is needed for the upside to gain traction. Once this happens, the buy orders may start snowballing and take the price to $8,750 in no time. This resistance is created by weekly SMA50. BTC/USD has been trading below this MA since March 12.

On the downside, the local support is created by $7,800 - this barrier served as a resistance level during the previous days, now it is reinforced by 1-hour SMA50. If it is broken, the sell-off may continue to $7,500 with 1-hour SMA200 located below this psychological barrier.