Yesterday, we saw a major rally that pushed BTC above the $7,000 and the $7,300 regions and resistance levels against the US dollar. Today, we can see why the BTC price reversed from a plunge to $7,000 – and see how BTC even broke the $7,400 level. However, the price of the dominant coin struggled to extend its gains above $7,500.
A new monthly high was formed near $7,447 and the price of the most dominant coin corrected lower. The Bitcoin price news showed a break below the $7,200 support area. Still, the bulls were able to protect the $7,000 to $7,100 demand zone and the price remained stable above the 100 hourly simple moving average.
The crypto news now show that Bitcoin just reversed and is now trading above the $7,200 level. We could see a clear break above the 50% Fib retracement level of the recent decline from a $7,447 high to a $7,085 low.
The most dominant coin on the crypto market is now testing the $7,350 area of the 76.4% Fib retracement level of the recent decline from a high of $7,447 to a low of $7,085. More importantly, we can notice a major bullish trend line forming with support near $7,200 on the hourly chart of the BTC/USD pair.
If we see a break above the $7,400 level soon, we could see proof why the BTC price went above these levels. However, the reality according to analysts is that BTC will remain well bid above $7,200 and $7,100 in the near term.
The main support now is forming near the $7,080 level, below which the bears are likely to aim a test of the $7,000 support and the 100 hourly SMA. Any further losses might lead the price towards the $6,900 breakout zone.
According to analysts, the Bitcoin and altcoin news now must show strength – and the coins need to back themselves in times of crisis. While the stock markets are now slowly gaining momentum, we need to see the crypto market doing the same and proving that it can overcome a crisis.
The technical indicators for Bitcoin (BTC) are now as following:
- Hourly MACD – The MACD is right now adding up to its momentum in the bullish zone.
- Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently back and above the 50 level.
- Major Support Levels – $7,200 followed by $7,100.
- Major Resistance Levels – $7,400, $7,500 and $7,800.
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