- Bitcoin sustains the losses from $7,500 above $7,100 as a bullish momentum builds.
Bitcoin renews the hope of trading above $8,000 before New Year’s as technicals improve.
Bitcoin dived under $8,000 last month and extended the losses under $7,000. The support formed above $6,500 formed the base of the recovery seen on Wednesday. Besides, the double-bottom pattern formed in the same level contributed immensely to the reversal. Bitcoin pulled magnificently above $7,000. The engulfing candle climbed the levels at $7,200, $7,400, and even came close to breaking the critical hurdle at $7,500.
At press time, Bitcoin is doddering at $7,151 after losing some ground from the high close to $7,500. Bullish momentum is building towards $7,200 (immediate resistance). The action is also supported by the upward-pointing Relative Strength Index (RSI) at 57.45. As long as the RSI stays above average and sustains an uptrend toward the overbought, Bitcoin's potential of retesting $7,500 will continue to grow.
On the flip side, the nearest support is the 61.8% Fib retracement level taken between the last swing high of $7,448 to a swing low of $6,496. Moreover, the confluence formed by the 50 Exponential Moving Average (EMA) on the 1-hour chart, the EMA 100, and the 50% Fib level close to $7,000. Bitcoin must not be allowed to drop into the $6,000 range again. Otherwise, it could plummet to lows close to $6,000. However, in spite of the consolidation, the focus should remain on $8,000.
Bitcoin Key Technical Levels
Spot rate: $7,139
Relative change: -147%
Trend: Bullish
Volatility: Shrinking
Support $7,082 and $7,000.
Resistance: $7,200 and $7,500.