- The Bitcoin price rose to over $7,100 yesterday, but failed to turn the recovery into a full-blown bullish breakout.
- In order to confirm a new bull run, the resistances need to be broken at $7,500 and $8,000, where the SMA 200 is currently located.
The Bitcoin price jumped above the important support/resistance level of $7,000 yesterday. However, BTC failed to rise above the trading level from before Monday’s crash to turn the recovery into a full-blown bullish breakout. Within the past 24 hours, Bitcoin has thus only recorded a solid increase of around 3.5% and is trading at USD 7,135 at the time of writing.
On Monday, the historic fall in oil prices had sent both traditional markets and the crypto market tumbling. The recovery in the oil market now seems to be affecting Bitcoin and the entire crypto market to the same extent. After a recovery in the stock market yesterday, the total market capitalization also increased by around USD 9 billion, reaching around USD 206 billion. Next to Bitcoin, Ethereum (6.1%), Tezos (+7.4%), Stellar (12.0%) and Cardano (+7.3%) have seen the largest price increases within the top 20 by market capitalization.
However, due to the ongoing correlation with the traditional financial market, the gains continue to stand on shaky ground. As popular analyst Josh Rager pointed out on Twitter, BTC continues to move steadily with the stock market, although it is not a “1:1 correlation”. Nevertheless, he told his more than 70,000 followers that as long as the S&P500 index does not refuel, Bitcoin will hold above $6,000 USD. At the same time, Rager also warned that another crash on the stock market could also pull the Bitcoin price down.
$BTC still moving steady with stock market
Again, not a 1:1 correlation but no reason to draw $2k to $3k BTC meme charts
Unless the $SPX tanks, Bitcoin will hold above $6k
Potential future pullbacks in both markets but until stocks drop, I'm not bearish on Bitcoin price pic.twitter.com/17NfYla28O
— Josh Rager 📈 (@Josh_Rager) April 22, 2020
These Bitcoin price levels need to be monitored
From a technical analysis point of view, the USD 7,500 level is currently considered to be an extremely important resistance level. Bitcoin bounced off it on April 7th, when the price marked a local high after the “Black Thursday” of March 12th. The recent upswing stopped early and could therefore only prove to be a fleeting attempt by the bulls if the USD 7,500 mark is not cracked within the next few days.
As a short-term goal, the trader “HornHairs” stated that Bitcoin has to stay above its monthly high of about 7,100 USD. At this level, the 8-hour supply, the Fibonacci cluster, and the weekly and annual opening price of Bitcoin all converge.
Massively confluent level for BTC here: 8H supply + fib cluster + yearly open + weekly open.
Break above Monday's high and HOLD and it is off to the races. pic.twitter.com/VpyCZEVDUF
— HornHairs 🌊 (@CryptoHornHairs) April 22, 2020
The pseudonymous trader “Credible Crypto” added that the bears could currently lose control of Bitcoin:
The impulsive break of our corrective channel was the first indication that bears may be losing control here. If we can get above the 7.1k region and hold above there, I expect we go for the liquidity and push to 7.5k. At that point my 7.8-8k target will be within grasp.
However, another well-known analyst, Big Cheds, was not impressed by the current price movements and said that bulls are currently moving in smaller time frames, 30 minutes. As confirmation of a bullish breakout, he cites the 200-day Simple Moving Average, which currently stands at $8,000.
— Big Cheds (@BigCheds) April 22, 2020