Bitcoin – Heads for $8,000 but up and Downs are Inevitable
The week has finally come to an end as Bitcoin continues to showcase its strength after hitting levels slightly above $6,300. The largest crypto has a target set on $8,000, however, technical levels suggest that the ride to this level is not going to be a smooth one.
BTC/USD daily chart
Bitcoin is currently exchanging hands at $6,261 level at the time of writing. The price is to some extent showing struggle to retrace higher. The prevailing technical levels are impressive since they are almost similar to the ones lost in November 2018 when the crypto winter set in. A reversal in itself is not a nice thing to look at. However, technically it will serve well for Bitcoin as it confirms breaking out of the elongated bearish trend.
Slightly above the current price, is the initial resistance that has been formed by a surge of resistance that goes as far as $6,800. The next resistance target rests at $7,100 (Bitcoin resistance congestion). Another resistance is observed at $7,450 (Bitcoin price resistance congestion). Bitcoin has eyes glued on $8,000; a level that it could trend towards especially if the prevailing resistance confluence does not strongly oppose movement north.
The initial support for Bitcoin is the $6,200 (BTC price support congestions zone) while the next support is holding ground at $5,800 (support congestion area). Importantly, the third support zone for the pair is resting at $5,750 (support congestion zone).
Bitcoin Key Technical Indicators
The MACD in the daily timeframe displays an impressive uptrend, besides, it has stayed in the positive region since the beginning of April. However, attention is key as the structure is divergent with the price.
RSI daily chart is also trending north above a trendline that has been connecting the lowest points of the indicator since November last year. We can expect a stronger bullish trend as we grind closer to $8,000.
100 SMA daily chart is below the price and playing catchup in support of the bullish trend.