- Bitcoin sustains the losses from $7,500 above $7,100 as a bullish momentum builds.
- Bitcoin renews the hope of trading above $8,000 before New Year’s as technicals improve.
The pre-holiday volatility being experienced across the cryptocurrency market is a blessing in disguise. Many traditional shut the digital market because of the high volatility. However, the people within the industry cannot survive without the same volatility, at least not for long.
Bitcoin dived under $8,000 last month and extended the losses under $7,000. The support formed above $6,500 formed the base of the recovery seen on Wednesday. Besides, the double-bottom pattern formed in the same level contributed immensely to the reversal. Bitcoin pulled magnificently above $7,000. The engulfing candle climbed the levels at $7,200, $7,400, and even came close to breaking the critical hurdle at $7,500.
BTC/USD 1-hour chart
At press time, Bitcoin is doddering at $7,151 after losing some ground from the high close to $7,500. Bullish momentum is building towards $7,200 (immediate resistance). The action is also supported by the upward-pointing Relative Strength Index (RSI) at 57.45. As long as the RSI stays above average and sustains an uptrend toward the overbought, Bitcoin’s potential of retesting $7,500 will continue to grow.
On the flip side, the nearest support is the 61.8% Fib retracement level taken between the last swing high of $7,448 to a swing low of $6,496. Moreover, the confluence formed by the 50 Exponential Moving Average (EMA) on the 1-hour chart, the EMA 100, and the 50% Fib level close to $7,000. Bitcoin must not be allowed to drop into the $6,000 range again. Otherwise, it could plummet to lows close to $6,000. However, in spite of the consolidation, the focus should remain on $8,000.
Bitcoin Key Technical Levels
Spot rate: $7,139
Relative change: -147%
Trend: Bullish
Volatility: Shrinking
Support $7,082 and $7,000.
Resistance: $7,200 and $7,500.
Summary
Article Name
Bitcoin Price Analysis: What Could Stir Bitcoin Price Action to $8,000?
Description
Bitcoin sustains the losses from $7,500 above $7,100 as a bullish momentum builds.
Bitcoin renews the hope of trading above $8,000 before New Year’s as technicals improve.
Author
John Isige
Publisher Name
Coingape
Publisher Logo
Disclaimer
The views, opinions, positions or strategies expressed by the authors and those providing comments are theirs alone, and do not necessarily reflect the views, opinions, positions or strategies of CoinGape. Do your market research before investing in cryptocurrencies. The author or publication does not hold any responsibility for your personal financial loss.
