Bitcoin price facing massive resistance zone, Stellar (XLM) extremely bullish

  • The Bitcoin price is currently facing a massive resistance zone between $7,800 and $8,000. A significant breach of this level would be an extremely bullish sign.
  • The altcoins continue to follow the lead currency Bitcoin, except for Stellar Lumens (XLM), which has seen an 11% increase over the past day.

The Bitcoin price is currently struggling to maintain the USD 7,700 level and is gathering momentum to climb to over $8,000. Since last Thursday’s sudden pump, when BTC shot up from $7,100 to $7,700, the price has been trading in a range of $7,400 to $7,800. At the time of writing, the price is at $7,719, which puts it in a good position to break through the level of $8,000.

The next price movement could be decisive for Bitcoin. As technical analysts unanimously agree, the bulls seem to be in place as the Bitcoin price is about to exceed the 200-day EMA (Exponential Moving Average). However, the price region around $7,800 USD currently functions as a strong resistance. If it falls, this would be an extremely bullish sign, as analyst “Teddy” also stated on Twitter. Yesterday was already the fifth day on which Bitcoin has tested the resistance, but has not yet broken through.

The resistance around USD 8,000 could prove to be very stubborn, as the analysis of the on-chain data shows. As Intotheblock noted, breaking the $8,000 mark could be a major challenge because there are 1.5 million BTC wallets that have bought at this price.

Using our IOMAP indicator , we see that there are close to 1.5mm addresses that could push back on Bitcoin getting passed $8,000. Looking at the levels of support, $7500 looks like it could hold strong with 1.17mm addresses holding almost 830k BTC.

This could mean that several investors want to liquidate their Bitcoin in order to end their investment at a balanced price in fear of another crash caused by the corona pandemic.

intotheblock bitcoin

Source: https://twitter.com/intotheblock/status/1254755923022708736

For this reason, among others, numerous analysts assume that Bitcoin will initially suffer a severe setback at the USD 8,000 mark. If the 7,000 USD support can then be maintained, some analysts expect the 8,500 to 9,200 USD zone to be tested again, as “Credible Crypto” also noted.

Stellar Lumens pumps by 11 percent

Today, Stellar Lumens is the altcoin with the largest gains within the top 50 by market capitalization and within the past 24 hours. XLM has seen a massive pump of 11%, taking the price to USD 0.069299. The surge has pushed XLM in front of Chainlink which previously ranked 11th among the largest cryptocurrencies by market capitalization, but is still about half a billion USD away from Tezos (XTZ) which ranks 10th.

The foundation for the pump was the 34% price increase between April 17 and 21. Since then, Stellar Lumens (XLM) has recently consolidated, with the recent price movement confirming a breakout, according to analyst “Big Cheds”. On the 6-hour chart, XLM is experiencing a bullish “re-test”, indicating that the XLM price has gained strong momentum.

About Author

Jake Simmons has been a crypto enthusiast since 2016, and since hearing about Bitcoin and blockchain technology, he's been involved with the subject every day. Beyond cryptocurrencies, Jake studied computer science and worked for 2 years for a startup in the blockchain sector. At CNF he is responsible for technical issues. His goal is to make the world aware of cryptocurrencies in a simple and understandable way.

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