Bitcoin had a remarkable overnight rally that allowed it to move up to $ 7,300. This happened after a longer trading period within the lower USD 7,000 region for the last part of last week.
It now appears that bulls are moving towards the $ 8,000 move as resistance could weaken as bulls begin to build further strength.
This is also because bulls are trying to break a historically significant moving average that could be the impetus for BTC’s next major uptrend – should bulls successfully get past it.
Bitcoin is rising as it shows signs of seeing further momentum
At the time of writing, Bitcoin is trading just over 2% at its current price of $ 7,230, a slight increase from the daily lows of $ 7,050 set during yesterday’s struggle for consolidation.
While this rise in US dollars is relatively small, it is significant from a standpoint that crypto will exceed its first short-term resistance level of $ 7,200 as bulls have been subjected to several harsh rejections in recent days.
An interesting observation from a popular pseudonymous Twitter analyst is that Bitcoin’s inverse chart appears to be drawing an extremely bullish situation for crypto with a $ 8,000 goal.
“The daily inverse bitcoin chart is a compelling case for the upcoming $ 8,000 test.” he noticed while pointing to the table below.
Some traders and investors believe that inverse charts can provide unique insight into the technical situation of an asset because they eliminate distortion and help you look at the asset from a different perspective.
Looking at the chart that analysts are referring to, it seems that Bitcoin is ready to approach its 200-day moving average, which is around $ 8,000.
BTC’s response to this important technical level could trigger the next big uptrend
Bitcoin’s potential rise to its 200-day moving average also comes when crypto tries to reverse its 89-day ema. This is a historically significant technical level that has determined previous trends.
Another analyst pointed to this level in a last tweetThis explains that there has been resistance to BTC for 6 weeks.
“Never underestimate the impact of the 89ema on the larger trend. It has a story where it’s an incredibly relevant level of support and resistance – every rebound / rejection has huge ramifications for direction. There has been resistance for almost 6 weeks now, ”he said.
Featured image from Unsplash.