Bitcoin appears to be gaining momentum after enjoying a fruitful weekend with two daily candle closes above the critical $8,000 level of support.
As the world’s largest cryptocurrency begins to build some positive momentum to the upside, many of the top altcoins seem to be entering an accumulation phase with slow sideways price action.
Bitcoin, on the other hand, seems to be struggling to break above the 200 exponential moving average (EMA) on the daily chart, which is coming in at around $8,152.
So far, every daily candle close above the 200 EMA has preceded a 4% correction on the following day, which demonstrates a clear battle over the level between bullish and bearish traders.
It’s worth noting that the 22 and 50 EMAs are both ticking to the upside, with a potential golden cross on the cards if the 50 EMA can topple the 200 EMA.
However, the daily relative strength index (RSI) has begun to stutter, with two lower highs following last week’s peak of 68.
The daily stochastics are also resting in the bullish control zone despite flirting with a bearish cross over the weekend.
The next week will be pivotal for Bitcoin’s trajectory over the coming year, with a clear breakout above $8,400 potentially leading to a major bullish reversal.
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Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.