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BTC’s prehaling push comes into play when Bitcoin’s price rises to $ 8,000

April 24, 2020

After over 19 days in the range of $ 6,900 to $ 7,250 The Bitcoin (BTC) price finally managed to overcome the resistance level of $ 7,250 in a large volume surge This resulted in the liquidation of almost USD 70 million in BitMEX.

BitMEX XBTUSD remaining stock. Source: Skew.com

BTC’s prehaling push comes into play when Bitcoin’s price rises to $ 8,000BTC’s prehaling push comes into play when Bitcoin’s price rises to $ 8,000

The strong upward move allowed the digital asset to secure a maximum of $ 7,738A price that hadn’t been seen since March 13 when the price of Bitcoin dropped to $ 3,750.

Just 18 days after Bitcoin is halved, both traders and fans will wonder if this is the long-awaited prehaling push or just another small push that has pushed the price up before attempting $ 8,000 To tackle dollars.

Daily cryptocurrency market performance. Source: Coin360

Some would conclude that the surge to $ 7,738 is significant as it reduces the likelihood that Bitcoin will drop to the recent lows below the $ 6,900 support level.

Although it is true Considerable resistance has long been expected from USD 8,000 and USD 8,500While the Twitter community for cryptocurrencies may be very optimistic about Bitcoin, the Crypto Fear Greed Index shows that investors remain extremely cautious about Bitcoin’s short-term outlook.

Crypto Fear Greed Index. Source: Alternative.me

Although the index has seen a slight surge in cryptocurrency market sentiment last month, The current value of 19 is still in the “Extreme Fear” category, not exactly where you would expect it to be 18 days before the halving.

Daily BTC USDT chart. Source: TradingView

As shown in the daily chart and predicted in the previous analysis, The increase to $ 7,700 took advantage of the small volume gap in the VPVR from $ 7,160 to $ 7,743The next challenge is the 61.8% Fibonacci retracement, with the 100- and 200-day moving averages.

The Bollinger Band’s moving average is also 100 employees Moving from $ 8,000 to support is expected to be a challenge. Even if the price exceeds $ 8,000, the VPVR shows $ 8,500 as another level of resistanceBut one would expect that until this level reached $ 8,000, $ 7,500 would be willing to provide support.

After hitting the daily high of $ 7,738, the price quickly dropped $ 200At the time of printing, however, the MACD continues to rise over the signal line and The histogram shows a continuous increase in the impulse in the 4-hour period and daily.

4-hour USDT-BTC chart. Source: TradingView

The RSI also remains bullish in both periods, but within 4 hours and 1 hour, traders will find that the volume of purchases has returned to the level before the rise.

In addition to decreasing volume, The top tips of the last three candles also indicate that short-term momentum is waning. as traders take profits and may assume that the price will either consolidate in the current range or fall back to retest past resistance levels.

For now, traders should watch the volume to see if an increase in buying volume signals that the price will try to attack the $ 61.8 Fib level at $ 7,924.

Because at the time of printing Bitcoin appears to be losing some of the momentum it has brought to $ 7,700 today. Traders could also expect the price to retest past resistance levels in the $ 7,450 to $ 7,300 range.

The views and opinions expressed here are solely those of author and do not necessarily reflect Cointelegraph’s views. Every investment and every trade step involves risks. You have to do your own research when making a decision.

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