The price of Bitcoin reports an increase of 3.49%, positioning the value above $ 7300.
- The price of Bitcoin is sustaining its short-term recovery since it passed a descending trend line.
- However, this could simply be part of a bearish correction to the Fib levels in the 4-hour chart.
- Note that the Bitcoin price is still trading within a downstream channel and is approaching the correction area.
The Bitcoin price was able to maintain its rise but is approaching a correction zone visible in the longer term charts.
The SMA 100 is still below the SMA 200 in the longer term to confirm that the path of least resistance is downward. In other words, the downward trend is likely to continue, possibly when the price of bitcoin tests the Fibonacci retracement levels.
The Fib level of 38.2% is at $ 7450.2 just after the central channel’s interest area. The 50% Fibonacci is $ 7750, which is aligned with a previous support converted into resistance. The 61.8% level is near the top of the channel at the $ 8064.3 level and the dynamic inflection point of 100 SMA, which matches the resistance of the channel to increase its intensity as a ceiling.
If any of these resistance levels are maintained, the price of bitcoin could resume the fall to the minimum of $ 6450 or create new ones closer to the bottom of the channel by $ 6000. The stochastic is already entering an overbooked territory to indicate that the selling pressure is about to return now that buyers feel exhausted.
Analysts point to the recovery in the global market of cryptocurrencies as one of the factors that drove the price of Bitcoin upwards, despite the fact that the gains were mainly due to other Altcoins. In the last 12 hours, volumes have increased in exchanges such as Bitfinex and Binance.
If the price of Bitcoin is able to maintain its level above the $ 7,000 level, analysts predict that it could soon make another test of $ 8,000 and maybe even break more if the activity remains. However, keep in mind that the United States has its NFP report later in the week and this could strongly affect general sentiment in financial markets, including cryptocurrencies.