Cryptocurrencies

Bitcoin edges towards bullish reversal amid $7,500 breakout

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.

Breaking out from $7,500 would most likely spur a bullish reversal in the price of Bitcoin, although a higher high would need to be formed above $10,500 for the market to enter a truly bullish phase.

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.

From a bullish perspective, Bitcoin has respected and shown strength from the $6,500 level of support, with two bullish wicks leading to 22% and 17% moves to the upside.

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.

The most critical bullish indicator for Bitcoin would be an influx of volume, which has been in a significant decline since November 23.

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.

For more news, guides, and cryptocurrency analysis, click here.

Oliver Knight

Londoner ‘Ollie’ graduated from Birmingham City University with a journalism degree in 2016. He combines his writing with his love of crypto and blockchain here at Coin Rivet, saying “It disrupts well-established institutions (banks) while giving an avenue to the less fortunate to achieve financial freedom.” Like all true Londoners, his pet hate is… “People standing on the left-hand side of the escalators on the Tube!”.

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