Source: Forex Analysis
Bitcoin managed to gain bullish momentum following a bounce from $7,500 as expected. Now there is a greater probability for the price to continue its climb with a target towards $8,000 in the coming days.
A recent poll shows that the majority of crypto investors have never experienced a transition from a bear market into a bull run. So, that’s what exactly is going on across the crypto market in recent weeks. BTC price is extending its climb moving away from the bottom reached in December 2018. Now Bitcoin price is rising once again having reversed after a downtrend for the whole year. The asset’s 200-week moving average which is an important long-term trend strength indicator is again growing at a rate of 5% month over month.
In Bitcoin, the vital indicator acted as support at the lowest points of the bear market. Eventually it prevented the Bitcoin price from falling lower, acting as the fuel that rocketed Bitcoin into a new bull trend. Most crypto analysts remind investors about increasingly longer market cycles in Bitcoin. However, bearing in mind the recent price action and corresponding growth in the 200-week moving average, the Bitcoin price might be ready to go on a full-blown bull run, causing a much shorter market cycle from the bear market low to the peak of the next hype.
Meanwhile, the price is currently trading at near an important price area of $8,000 where stronger bearish pressure was observed earlier. History may repeat again. A daily close above $8,000 is expected to lead the price higher towards $9,000 again with an ultimate aim to reach the psychological level of $10,000.
SUPPORT: 7,000, 7,500, 7,800
RESISTANCE: 8,000, 8,400-500, 9,000
The material has been provided by InstaForex Company – www.instaforex.com