Bitcoin Smashes Above $7,000; Bulls Rejoice
- BTC/USD has jumped above $7,000 as the recovery momentum gains traction.
- The next resistance awaits BTC on approach to $7,500.
Bitcoin bottomed at $6,526 during early Asian hours. A thick layer of stop orders forced the bears to slow down their assault and allowed for an extended recovery towards $7,000. Once this critical barrier gave in, the upside accelerated and took BTC/USD to $7,252.
Bitcoin’s technical picture
Looking technically, BTC/USD bumped into SMA100 (Simple Moving Average) 1-hour and retreated to $7,180 by press time. Once it is out of the way, the upside is likely to gain traction with the next focus on $7,350. This resistance limited Bitcoin’s recovery during the weekend. We will need to see a sustainable move above this handle for the upside to gain traction towards $7,640 (SMA200 1-hour).
On the downside, the initial support is created by SMA50 1-hour located on the approach to psychological $7,000. If it is broken, bears might get a chance to take the led again. The next support awaits us at $6,240 (the middle line of 1-hour Bollinger Band), while the pivotal barrier is $6,500. It is reinforced by the intraday low and the lower line of 1-hour Bollinger Band.