Bitcoin is on the brink of a potential breakout above the $7,500 level of resistance following a 10% rally over the weekend.
A daily candle close above the 50 exponential moving average (EMA) is the first hurdle for Bitcoin, as it has not traded above that level since November 10.
Bitcoin has been locked in a bearish trend since June’s high of $14,000, with consistent lower highs coupled with a death cross on the daily chart after the 50 EMA crossed the 200 EMA to the downside for the third time since 2014.
However, if Bitcoin is rejected at the current level, it could well slump back towards the $6,500 level of support, which will get weaker with each touch.
A fundamental news event would be needed to drive volume higher though, as it’s likely that the upcoming halving event is already priced in.
Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.