Bitcoin’s price surge continues after the cryptocurrency managed to rise a further 4.12% over the past 24 hours, bringing the price above strong resistance at $6,152 to where it is currently trading around $6,280.
Bitcoin has now seen a 21% price hike over the past 30 days, with a further, rather impressive 82% price surge over the past 90 trading days.
The cryptocurrency remains ranked in the 1st position, as it presently holds a $111.5 billion market cap valuation. Bitcoin was underneath the $100 billion market cap valuation since November 2018, before the cryptocurrency bloodbath, and has now managed to recently break back above the level.
In this article, we will take a look at the resistance that Bitcoin will experience on the way up toward the $7,000 target level. After such a remarkable run of price growth, we can expect the bulls to continue further higher and head toward $7,000. Bitcoin has risen by a total of 19% in May 2019 alone, and has seen a further massive 53% price increase since the start of April 2019.
Bitcoin Price Analysis
BTC/USD – MEDIUM TERM – DAILY CHART
What Has Been Going on?
Taking a look at the daily BTC/USD chart above, we can see that after breaking above the 100-day moving average level toward the end of March 2019, the cryptocurrency has been on an epic surge ever since. At the same time that Bitcoin broke above the 100-day moving average level, the cryptocurrency also broke above a very long-term descending trend line.
Bitcoin has now recently risen above the strong resistance at the bearish .786 Fibonacci Retracement level (drawn in blue), priced at $6,152, which should now act as strong support moving forward. This bearish Fibonacci Retracement level is measured from the November 2018 high, before the market collapse, to the December 2018 low.
What Is the Current Short-Term Trend?
The current short-term trend remains bullish at this moment in time. For this bullish trend to become invalidated, we would need to see Bitcoin fall and break beneath the $5,750 level. If Bitcoin was to fall beneath the $5,000 level, the trading condition would then be considered as bearish.
Where Can We Go From Here?
If the bullish momentum continues to cause BTC/USD to climb even further higher, we can expect immediate resistance above to be located at $6,400, and then at the 1.272 Fibonacci Extension level (drawn in orange), priced at $6,455. Above this, higher resistance is then to be expected at $6,500 and at the November 2018 high around $6,515. Further resistance above is then located at $6,640 and $6,859, which contains the 1.414 Fibonacci Extension level (drawn in orange).
If the buyers can continue to clear the resistance at $6,859, they will be clear to make an attempt at the target level of $7,000.
Above $7,000, further higher resistance can then be expected at the $7,100 level.
What If the Sellers Regain Control?
Alternatively, if the sellers regroup and start to push the market lower once again, we can expect immediate support toward the downside to be located at the $6,152 level. As this level had provided strong resistance previously, it is expected to provide equally strong support now moving forward. Beneath $6,152, more support then is expected at the $6,000 level.
If the bears cotninue beneath $6,000, we can then expect more support to be located at $5,814, $5,750, and $5,400. Below $5,400, more support can then be expected at $5,250, $5,000, and $4,848.
What Are the Technical Indicators Showing?
The RSI has recently reached overbought conditions above the 50 level, which shows that the bulls are in complete control of the market momentum. However, in overbought conditions, the bulls may soon become exhausted, which will result in a small market pullback. Furthermore, the Stochastic RSI is also in overbought conditions, and is positioned for a crossover below signal, which would suggest a small retracement is potentially on the cards.
Conclusion
After the recent enormous price growth, Bitcoin has every chance to reach $7,000 relatively soon. However, the cryptocurrency will need to overcome resistance at the $6,515 level (November 2018 high) to make another attempt at the $7,000 level.
