Bitcoin hits the Vital $7000 mark, Posed to New High
Bitcoin is now trading above the $7,000 mark and all signs indicate that the upward surge is set to continue. Technically, the new resistance formed is likely to hold for a longer period since the 100 SMA Iis now under the longer-200 SMA term.
Traders can expect a bullish crossover in the coming hours considering that the margin separating the two indicators has narrowed significantly. Once the crossover is achieved, bitcoin might get adequate backing to remain at above the $7000 level since there is a possibility of more buying pressure.
If all this falls in place, bitcoin might hit $8,400 and $8,500 which will complete a huge double bottom trend. In height, the new reversal formation has chances of capping at $2,700 an indication that the development could be the same size.
At the moment, RSI is moving the downwards sides, and sellers might be responsible. At the same time, stochastic is heading south an indication that bitcoin could take the same route while sellers remain in control.
However, bitcoin can still drop to $5,800 if a maintained bearish momentum is achieved. In general, the current move is a positive one as investors await the SEC ruling on bitcoin ETF that have shown interest in joining the industry.
The appetite has can be seen in other global financial markets due to happenings in NAFTA and Brexit. There is a need for a unique catalyst to maintain any rallies and ruling of ETF might work the magic. Approval could form stronger capacity and heightened activity for the top crypto.