Pre-Friday Magic Or Reflex Action – BTC/USD Bounces Off $7,000 Support

• Bitcoin buyers keen on defending $7,000 support focus on $7,500 before the weekend session.
• Bitcoin must reclaim the lost ground above $7,200 to escape the bear trap between $7,000 and $7,200.

Bitcoin has in the recent past reacted bullishly on Fridays. Last week, the largest cryptocurrency broke a few barriers including $7,400, $7,500 and $7,600. Earlier today, BTC extended the bearish leg below 7,200 and even came into close contact with $7,000.

The downtrend was as a result of the lost momentum towards 8,000. After zooming above $7,600, BTC/USD tried and failed to break above $7,700. The following price action was a reversal that settled initially above $7,500. However, continued bearish pressure over the week forced the cryptoasset below $7,500 and $7,400 respectively.

BTC/USD 1-hour chart

It has become apparent that when $7,500 is broken, Bitcoin drops to refresh lows around $7,000. A reversal has, however, commenced, with Bitcoin trading above the trendline resistance. The price action is bullish enough to break the hurdle at $7,200. Marginally above the hurdle is the seller congestion at the EMA 50. Movement towards $7,300 will face additional hurdles at the EMA 100.

From a technical perspective, the ongoing recovery has backing from key technical indicators such the RSI. From lows around 36.46 on Thursday and 23.76 on Tuesday, the RSI is holding ground at 53. Moreover, the upward trend suggests that the bulls have the upper hand and Bitcoin is primed for gains past $7,200.

Bitcoin Key Technical Indicators

Spot rate: $7,186

Relative change: -18.47

Percentage change: -0.24%

Trend: Bullish

Volatility: Low

RSI: Overbought zone-bound

Summary

Article Name

Bitcoin Price Analysis: Pre-Friday Magic Or Reflex Action – BTC/USD Bounces Off $7,000 Support

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Bitcoin Price Analysis: Pre-Friday Magic Or Reflex Action – BTC/USD Bounces Off $7,000 Support

Author

John Isige

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Coingape

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