Despite the brutal crash earlier this month, Bitcoin has been performing very well in recent days, rising from $ 5,000 to up to $ 7,000 the other day. Bullish momentum has weakened in the past few days, and BTC has stalled in the mid-$ 6,000 phase. However, a simple technical factor suggests that the cryptocurrency will soon rally again.
Related Reading: House Democrats Suggest That “Digital Dollar” Is Moving For Bitcoin: Here's Why
Bitcoin could soon grow to $ 8,000: simple technical factor
The rally in recent days has not gone unnoticed. Traders have seen the cryptocurrency tick above the support level after the support level when it wins.
Indeed prominent trader Byzantine general recently commented About the bullish importance of the rally in the last few days, in a message published in its telegram channel, it says:
"Something I will think of: we have recaptured the base of daily BB. When BTC does this, it usually marks the top of the bands."
What he says is that since it has taken the middle Bollinger band on the daily chart as support, Bitcoin has a high chance of getting to the top of the indicator area, which will soon be around $ 8,000.
In addition, the Dow Jones Index has risen 20% since the (short-term) stock market low last week, and has reached a "bull market" according to the textbook definition of the term. Analysts say the correlation between the S&P 500 and Bitcoin is getting tighter during these times, suggesting that further strength in stocks could make Bitcoin higher if investor confidence returns.
Under key resistance
Although the Byzantine general sees a move toward $ 8,000, his graph shows that the rally is likely to end there. And for a good reason.
According to previous reports from NewsBTC, Bitcoin trader Filb Filb said that $ 8,000 is the price point where the worst resistance cluster since the 2018 bear market is. "
- The 200-day moving average.
- The 100-day moving average.
- The 50-day moving average.
- The moving 20-month average.
- Bitcoin & # 39; s 61.8% Fibonacci retracement of the February high to a low of $ 3,800.
- And the annual pivot level.
The fact that all of these levels are currently around $ 8,000 suggests that it will not be easy for buyers to break through this level at once.
Related topics: Bitcoin price is still following an exact pattern, marking the low of $ 3,000 in 2018
Featured Image from Shutterstock