The most dominant cryptocurrency Bitcoin is back above $7,000 and may spark action if higher lows sustain. The Bitcoin and altcoin news now show that the major coin reached highs for the day at $7,375 which demonstrated a swing of 7.5% from the lows of $6,854.
Other major cryptocurrencies made similar moves in terms of price. Ethereum (ETH) regained the $130 level and traded as low as $125.50 before that. Ripple’s XRP token reclaimed $0.19 even though it previously traded at $0.185.
All in all, Bitcoin is back above its major psychological level and the dominance remains above 68%. This is another clear sign that the dominant coin is on its way to grab 70% of the market share of the total cryptocurrency market capitalization.
The 4-hour chart also shows that Bitcoin is having a large bounce from $6,850 and is completely engulfing the previous day’s bearish action which sent the price below $7,000. The move higher meant that the point of control has been reclaimed which has been acting as an actual area of support and resistance lately.
Now that Bitcoin is back above $7,000, we can see that price action remains with a diagonal resistance on lower timeframes. This is what led to the testing of the $6,000s. So far, this area has been one of demand and is showing serious signs of showing a higher low. If this plays out, it could imply that buyers remain interested in this area for now although the volume continues to subside suggesting that a bigger move may be in the works.
For the bulls, the diagonal resistance is now in the $7,400s and must not only be overcome but also must remain above this level. The weekly resistance, as the Bitcoin price news show, remains overhead at $7,555 and has not closed above it since the start of November. The two levels of resistance are now key for the bulls to surpass and it seems very likely that a higher low from the upper $6,800 could be a major catalyst for an explosive move.
Meanwhile, the majority of the price action as Bitcoin is back above $7,000 has taken place between the point of control and the weekly resistance with low volume dips in price below the cryptocurrency was bought up.
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