Bitcoin has seen a remarkable overnight rally that allowed the price to move up to $ 7,300, after a long period of trading sideways in the low region of the $ 7,000 region last weekend.
Now it seems the price is targeting towards $ 8,000, as resistance weakens as the bulls begin to strengthen further.
This also happens when the bulls attempt to surpass the historical moving average, which is the driving force for the next major uptrend of BTC if that is accomplished.
Bitcoin gets higher as the flashing momentum rises
At the time of writing, Bitcoin is trading up more than 1% at the current price of $ 7,235, up slightly from the daily low of $ 7,050 set during yesterday's consolidation.
Although BTC / USD increased relatively little, it was significant because it has moved past the first short-term resistance at $ 7,200, which has refused to crawl several times during the past several days.
According to popular anonymous Twitter analyst, Bitcoin's inverse chart seems to paint a high bull run for the top cryptocurrency, with an existing target of $ 8,000.
$ BTC #Bitcoin daily inverse chart makes a compelling case for the upcoming $ 8000 test pic.twitter.com/wzR5PSb1Lg
- Big Cheds (@BigCheds) April 18, 2020
“Bitcoin's daily inverse chart creates an attractive case of test 8,000 dollars coming. ”
Some traders and investors believe that inverse charts can provide unique insight into the technical situation of assets, as they eradicate bias and help us look at assets at an angle. look different.
While looking at the chart that analysts refer to, it looks like Bitcoin is ready to move towards the 200-day moving average that exists at around $ 8,000.
The reaction of BTC to this important level of technology could spark the next big uptrend
The possibility of Bitcoin price rising to the 200-day moving average appears at the same time as the attempt to flip the 89-day EMA. This is a historically significant technical level that defines the previous trend.
Another analyst pointed out this level in a recent tweet, explaining that it had been resisting BTC for 6 weeks.
Never underestimate the impact of the 89ema on the greater trend.
It has a history of being an incredibly relevant support and resistance level - any bounce / rejection from it has huge consequences on the direction.
__
Currently has been resistance for nearly 6 weeks$ BTC pic.twitter.com/Y2BhHhdtYH
- Teddy (@TeddyCleps) April 18, 2020
"Do not never underestimate the impact of EMA 89 to the bigger trend. It has historically been an extremely appropriate level of support and resistance - any response / rejection from it has huge consequences for the direction. Currently resisting for nearly 6 weeks ”.
Stimulating checks and hedge funds can push Bitcoin to $ 8,000
At the time of writing, US citizens have begun to receive a $ 1,200 stimulus check supporting them from the economic effects of the Corona virus. Estimate About 80 million people received it in their bank accounts on April 18.
At the same time, exchanges like Coinbase are witnessing multiple fiat deposits equivalent to $ 1,200. Co-founder and CEO Brian Armstrong tweeted with a chart showing a spike in purchases / deposits worth around $ 1,200.
- Brian Armstrong (@brian_armstrong) April 16, 2020
At the same time, in report In the latest quarterly, the team at Grayscale Capital emphasized that a total of $ 503.7 million was invested in Grayscale products in Q1 / 2020 with an average of $ 30 million per week in Bitcoin Trust. The team also revealed that Grayscale owns 1.7% of the total Bitcoin in circulation.
All arrows point towards $ 8,000 Bitcoin
As the aforementioned checks continue to be transferred to the investor's bank account, it is very possible to buy BTC before halving. In addition, their obsession with global recession is that many people believe that Bitcoin is a way to preserve the value of fiat assets when inflation erupts. This can be further evidenced by the increased institutional interest in Bitcoin as seen in Grayscale's quarterly report.
BTC / USDT 6 hours | Source: Coinmarketcap.com
Check more 6-hour BTC / USDT chart, with the following support areas:
- $ 7,050
- 6,900 dollars
- $ 6,800
- 6,600 dollars
In terms of resistance, Bitcoin has price ranges that need to be overcome before recovering $ 8,000:
- 7,200 dollars
- $ 7,300
- $ 7,450
- $ 7,650
- $ 7,950
In terms of moving averages (MA), the current BTC price is higher than the MA 50, 100 and 200 thus providing a bullish environment. The MACD and transaction volume are also green, indicating that interest in Bitcoin buying is constantly growing. A stable MFI at 70 proves likely to push prices back to $ 7,300 or $ 7,450 in the coming hours.
Optimistic but do not forget to be cautious
However, it is still possible for Bitcoin to enter bear territory due to COVID-19's global economic impact. In addition, King Crypto constantly fights with ominous Death Cross on the daily rankings.
Daily BTC / USDT chart | Source: Tradingview.com
Readers and traders are also reminded to place appropriate stop losses to protect their leverage position on different exchanges.
You can see the price of BTC here.
Disclaimer: This is not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.
Minh Anh
According to AZCoin News
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