Bitcoin Price Inches Higher to $6.7K on $2 Trillion Stimulus Agreement
Bitcoin price pushed higher toward $7,000 as U.S. lawmakers agreed on a $2 trillion stimulus package aimed at fixing the damage caused by the Coronavirus pandemic.
Bitcoin (BTC) price is continuing to move higher on March 25 alongside U.S. equities markets, which yesterday saw a historic 11%+ rise on news of a potential multi-trillion-dollar economic stimulus package. This was the single biggest daily rally since 1933.
At press time, BTC price is attempting to establishing a higher foothold at $6,700 while Dow futures and are up over 114 points, according to Bloomberg Markets.
The strong relief rally on March 24 also showed that investors anticipate that the stimulus package will help to stem bleeding markets and restore confidence to investors.
Crypto market daily performance. Source: Coin360
Earlier, the price surged to $6,832, nearly surpassing the previous new daily high at $6,905 before spending the remainder of the day trading in the $6,500 to $6,750 range.
BTC USDT 4-hour chart. Source: TradingView
Currently, there is support at $6,500, a point aligned with the ascending trendline but if the price falls below the trendline there is support at $6,451 where the 50% Fibonacci retracement level sits.
At the time of writing, the 4-hour chart shows the relative strength index (RSI) remains in bullish territory at 61.
BTC USDT daily chart. Source: TradingView
On the daily timeframe, the MACD histogram shows increasing momentum and the Chaikin Money Flow oscillator (CMF) is also above 0 and rising in tandem with the price. As Bitcoin price works its way toward setting a high above $6,905, the 61.8% Fibonacci retracement level ($7,088) is likely to be a challenging resistance level to overcome.
If the price can push above this level, traders anticipate Bitcoin will continue its stair-step pattern on toward $7,650. For day traders a breakout above $7,685 is likely to see the price rise to the upper Bollinger Band arm at $6,983, or even $7,088.
In the event of a reversal that pushes the price below $6,450, there is also strong support and a high volume VPVR node at $6,200.
Bitcoin daily price chart. Source: Coin360
The overall cryptocurrency market cap now stands at $185.9 billion and Bitcoin’s dominance rate is 65.6%.