The price of Bitcoin (BTC) has recovered sharply from $ 6,800 to $ 7,600 within four dayswith an increase of 12%. Two technical factors are likely to push BTC down to $ 8,000 in the short term as traders expect a strong weekly close.
In the next days the simple 200-day moving average (SMA) of just over $ 8,000 y An ascending triangle formation could push Bitcoin’s price into the range of $ 7,900 to $ 8,000 short term.
200-day SMA and rising triangles are solid technical indicators for Bitcoin
The 200-day SMA, which is also widely used by stock tradersis generally used to determine long-term market trends in an asset or index.
When the price of an asset is Bitcoin in this case holds above the 200-day SMA, it is considered an upward trend. However, when consolidated by below the level indicates that the asset is on a bear market.
Bitcoin daily chart with SMA above. Source: trade view
Performed since “Black Thursday” on March 12thwhen the price of Bitcoin dropped to $ 3,600, BTC has remained below the 200-day SMA resistance level. Technically, Bitcoin is still in a downtrend, and a $ 8,000 rejection would confirm that.
But the price of Bitcoin shows signs of a new rally of up to $ 8,000, which is supported by the formation of an ascending triangle in a relatively short time.
According to the technical analysis of the cryptocurrency trader Scott Melker, Bitcoin’s 4-hour chart, forms an ascending triangle. Rising triangles can lead to a further upward movement in the short term if they are supported by a gradually increasing volume and open interest in the futures market.
The ascending triangle is formed on a 4 hour Bitcoin chart. Source: Scott Melker
Low timeframes, which point to a further slight recovery of Bitcoin in the upcoming timeframe, and the $ 8,000 200-day SMA show that the likelihood that BTC will move up in the coming days remains high..
Large spot exchanges like Coinbase have a group of large customer orders for $ 8,000. Bitcoin’s tendency to move towards a large order led by liquidity-seeking traders reinforces the argument for BTC to move further up the following week.
Large Bitcoin orders from Coinbase for $ 8,000. Source: redxbt
A slow rise will be beneficial for alternative currencies
In the last week Alternative large-cap cryptocurrencies (altcoins) such as Ethereum and Tezos have made significant gains over both Bitcoin like the US dollar.
In the past, the price of Bitcoin, which is slowly moving upwards, along with an increase in daily volume, has led to a decent recovery in altcoins.
For example, ether (ETH) has risen 17% in the last four days and outperformed Bitcoin, although it was at a disadvantage compared to BTC when the first outbreak of $ 7,000 occurred on April 22.
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