Bitcoin has been struggling to find a way above $7,000 for the past two weeks with several significant rejections from the resistance area. The bulls, however, have been able to maintain a daily uptrend and have stayed above the 12-period EMA for the last week.
They were also able to break above the 26-period EMA which was used as support later one before the final breakout. Yesterday, BTC saw a huge 8% price increase after breaking above $7,200 and touching $7,459 today. Bulls are currently forming a daily bull flag and EMAs are on the verge of a bull cross.
Trading volume hasn’t been impressive but it’s not necessarily a bad sign. It seems that the correlation between the traditional stock market and Bitcoin is back as the S&P 500 saw a significant price increase yesterday as well.
Bitcoin Up 3% In 2020
Bitcoin started trading at around $7,175 at the beginning of 2020 right before the massive but short bull run to $10,500. The current price of Bitcoin is around $7,380 which means a 3% price increase from January 1.
This was pointed out by Skew on Twitter.
According to the graph, the second quarter seems to almost always be positive for Bitcoin and that seems to be the case again.
Stocks have seen a significant bounce as well now, however, the S&P 500, for example, is still down around 18% since the beginning of 2020. At this point, it’s clear that Bitcoin and the crypto market are outperforming traditional stocks but will this trend last now that the US stimulus packages are being put in action?
What’s The Next Move For Bitcoin?
Now that Bitcoin has been able to finally break above the $7,000 resistance area, bulls have a clear way up to $9,200. There is very little resistance now for BTC which is currently stuck around $7,400. The nearest resistance is located at the weekly 12-period EMA at $7,430, basically where Bitcoin was rejected this last time. The next resistance would be around $7,881 and that’s about it.
Bulls are certainly confident right now but they are looking for a bit more trading volume to really be sure. A pullback to re-test $7,000 is possible if Bitcoin cannot see more continuation after $7,400.