Bitcoin breaking the resistance of $ 7,200 overnight has greatly boosted the first motivation since BTC fell below the support it set at $ 6,600 earlier this week.
The recovery action further confirms the low in early March may be a long-term bottom, because the next uptrend is expected to be very sustainable.
This view is also reinforced when observing unprecedented growth in trading volumes during the recent surrender.
Bitcoin continues to expand its momentum over time after rebounding from 3,800 dollars
In the period after Bitcoin plunged to a low of $ 3,800 on March 12, the price recovered steadily leading to a high of $ 7,500 and encountered significant selling pressure here.
Despite a slight decline after that, the bulls created a massive buying pressure at around $ 6,600, which in turn brought it back to its current price of $ 7,250.
This momentum widened overnight and caused BTC to overcome many key resistance levels, allowing the cryptocurrency to target the resistance of the long time frame at highs for weeks.
Sustainable resilience is not only reflected in the steady increase in prices, but also in the increase in spot purchases seen throughout the past month.
The popular Bitcoin Jack Trader also recently pointed out the uptrend of spot buying volume in the period after the decline, correctly calling it a "divergence that no one told you".
The one divergence nobody told you about pic.twitter.com/IaAFWH8wr2
- // Bitcoin ack (@BTC_JackSparrow) April 18, 2020
Kspot exchange rate strong increase It shows the long term bottom has formed
While analyzing Bitcoin spot volume trends, it is important to note that the increasing buying pressure at the beginning of March is so important that ‘overlap’ with many other historic market bottoms.
Mohit Sorout - founding partner at Bitazu Capital - recently cited the chart showing the point of view mentioned above, saying that "is trying to say something".
Spot volume on $ BTC is trying to tell something.
Wonder what it means. pic.twitter.com/TrSP4vX63k
- Mohit Sorout (@singhsoro) April 18, 2020
"Mass immediate delivery BTC is trying to say something. Wondering what it means?”.
The culmination of these factors seems to suggest that Bitcoin's continued uptrend could soon turn into something much bigger than just a short-term recovery.
BBitcoin target moves to key resistance after breaking above 7,200 dollars
At the time of writing, Bitcoin is trading just over 1.05% with the current price of $ 7,221, which is equivalent to the level where the cryptocurrency was once strongly resisted.
When BTC fluctuated sideways for most of the 5th and 6th days, the bulls tried to overcome this level many times, but each time experienced significant selling pressure that led to rejection.
A break above this level has caused buyers to target the next resistance level, which is located at around $ 7,400 according to a popular analyst.
Super exciting $ 150 range for $ BTC ever since the move up from sub $ 6600
Expecting some consolidation before the next move - still watching $ 7400 as the area to break
Saturdays are notoriously known to be boring so not expecting much tomorrow and more action on Sunday pic.twitter.com/TT5w7gMu33
- Josh Rager (@Josh_Rager) April 17, 2020
"Super interesting range 150 dollars for BTC since the increase from 6.600 dollars
Expect some consolidation before the next move - still follow 7.400 dollars when the area is broken
The 7 fame is boring so don't expect much on it and more action on csunday”
If the bulls are able to flip sharply $ 7,200 from the resistance level to support, it will spark a new wave of buying pressure that will help BTC solve the important resistance level right before the current price.
Comeinand sell giant on Coinbase may stop BTC overcome the major resistance
However, one analyst noted that BTC may not pass these levels in a short time, mostly because many large sell orders appear on Coinbase - potentially causing it to drop in price.
One factor that can prevent bulls is the large number of sell orders that appear on popular exchange Coinbase.
The anonymous trader pointed out this phenomenon, explaining that the ask command is currently doubling the size of the bid within the 5% price range, indicating that BTC is ready to pullback within a low time frame.
Big sells popping up on CB.
Asks 2x bids (in a 5% range)
- Hsaka (@HsakaTrades) April 18, 2020
“Command bLarge projects appear on CB. Ask 2 times bid (within 5%). Maybe time to BTC pullback on low time frame”.
Unless these sell orders disappear within the next few hours, it is likely that they will be the driving force to push Bitcoin further down.
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.
According to AZCoin News
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