Today, April 2, Bitcoin shook off the “death cross” signal seen last week and managed to hold a price of around $7,000, after dropping down to about $6,500 during Easter Weekend. A “death cross” signal occurs when the 50-day moving average crosses below the 200-day moving average, and this is generally regarded as a negative signal. The coin was trading at near $8,000 this time last week.
Nevertheless, several analysts remain positive on the mid-term trend of Bitcoin. Cryptocurrency trader Nick Cote claimed that bitcoin could test the $7,700 level in the upcoming days, and if it sustains its momentum, it could move back to the $8,000 region.
BTC On Short-Term Bull Run, Major Support Set At $6,875
During the first quarter of 2018, Bitcoin registered its largest three-month price decline since 2011. Currently, BTC/USD is on a short-term bull run toward $7,050. A major support level has been established at around $6,875, while a resistance of $7,100 is yet to be tested. Based on the moving averages and the fact that Bitcoin managed to fight off the “death cross”, a run toward $7,500 this week could be on the cards.
Historically, Bitcoin always managed to recover from these kinds of losses, and a price rebound almost always happens after the RSI index score falls below 30. The major selloff that happened during the weekend seems to have subsided, and trading volume is quite low at the moment.
As for the technicals, although the MACD is showing a bearish signal, the RSI indicator is signaling that Bitcoin was oversold. A bullish-RSI divergence confirms that an upward movement is likely to happen in the following days.
Looking at the Technical Indicators:
- Hourly MACD — Bearish signal
- Hourly RSI — BTC is in a bullish zone
- Major Support Level — $6,875
- Major Resistance Level — $7,100
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