Bitcoin recovery continues this week with the virtual asset’s value rising steadily, crossing the critical $7,000 resistance level. The top cryptocurrency is now trading above $7,200, which is close to 100% rise from its recent bottom of $3,800 recorded on the March 12 collapse.
Crypto community hold largely positive outlook
The crypto community is generally optimistic that Bitcoin will retain its upward trend in the near future and hit the critical $7,600 price level. According to a Twitter poll conducted by crypto analyst @CryptoMichNL the community feels that it is more likely for Bitcoin to reach $7,600 than drop to $6,400. The bullish sentiments were expressed by 49% of the poll participants while only about a third (34%) felt Bitcoin was more likely to take a dip.
The positive short-term outlook is a reflection of the growing confidence in the crypto market. This is a huge sign as it comes in the backdrop of a recent flash crash in which Bitcoin lost over half of its value. Close to $100 billion of the entire crypto market capitalization was also wiped off during the crash to compound a disastrous period for the blockchain-based assets.
Analysis shows Bitcoin is gaining bullish momentum
The optimistic members of the crypto community will be pleased to know that market trade analysis shows that Bitcoin is building bullish momentum. Currently, the virtual currency is trading comfortably above both the $6,500 and $7,000 resistance level. The trend line also shows that Bitcoin is testing the 50% Fibonacci retracement level that was its last main decline during the recent flash crash.
However, the top cryptocurrency is facing a tough battle ahead with a strong resistance expected at the $8,000 price level. Bitcoin will firstly need to break above the 100-day moving average resistance to confirm its bullish trajectory. Failure to cross this level could see the digital asset revert to a bearish trend line that is creating strong resistance at around $7,880.
Bitcoin investors should not worry much about potential huge losses as the virtual currency has established support around $6,800 after turning this level from resistance to its breakout zone.
Additional support can also be found near the $6,500 level that is expected to become the bulls’ last stand. In the case of further downwards breach below this level could leave Bitcoin in bear territory. However, the current technical indicators show that this scenario is highly unlikely.