Less than 24-hours ago Bitcoin (BTC) price dropped to a two week low at $6,468, inciting calls for a revisit to the sub-$6K zone but the digital asset deftly shook off the bears by reversing course to rally to $7,190.
At the time of writing the Bitcoin trades slightly above $7,100. As one would expect, altcoins followed the drop in Bitcoin price but as it recovered a number of top altcoins also bounced strongly. Ether (ETH) managed a 17.77% gain, while Binance Coin (BNB), and Chainlink (LINK) surged by 11.65% and 15.02% respectively.
Crypto market daily performance. Source: Coin360
Bitcoin’s 10% surge pushed the price above the 50-MA which had been serving as resistance for the past 9 days and a close above this level is crucial or the price can slip back below $6,900 to return to the range of the previous week.
Previous analysis focused on the need for Bitcoin to flip $6,900 to support and also the importance of clearing the resistance cluster (pink) from $6,886-$7,250. Today’s move to $7,190 has ticked one of the two boxes but at the time of writing the price is still touseling with the 50% Fibonacci retracement at $7,136.
As things currently stand a close above the 50-MA (descending trendline) would be acceptable progress.
BTC USDT daily chart. Source: TradingView
An even better outcome would entail Bitcoin price pushing above the 50% Fib retracement to $7,250 but in addition to the 50% Fib level being resistance, there is a high volume VPVR node right at $7,200. If bulls can push the price through this node ($7,200-$7,400) a run up to the 100-day moving average at $8,100 seems probable.
BTC USDT daily chart. Source: TradingView
The Bollinger Band moving average is also lined up with $8,100 and both it and the 100-MA are slightly above the 61.8% Fib level at $7,931 so many analysts have called for a rejection at the 100 and 200-day moving average.
BTC USDT MACD daily timeframe. Source: TradingView
On the daily timeframe the moving average convergence divergence has avoided a bear cross as the MACD has pulled sharply away from the signal line and the histogram flipped above 0 with a dark green bar.
BTC USDT RSI & CMF daily timeframe. Source: TradingView
The RSI has also taken an encouraging turn, moving from 45 to 55 at the time of writing. The Chaikin Money Flow has also pulled above 0 and buy volume on the daily timeframe is the highest it's been since April 2.
A bearish outcome would take place if Bitcoin price pulled back to close below the 50-MA or the $6,900 support.
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