After a dramatic night of price reversals late on June 6 (UTC time), Bitcoin (BTC) is pounding on the $8,000 level.
The leading crypto looked poised for a trip down into the mid-7’s, after first breaking uptrend support, and then the middle band of price support around $7,600.
But price was staunchly defended at the bottom of the range, where single buy orders worth over $20 million were briefly observable on the BitMEX exchange, as seen in a graph from it below. In sum, the bulls showed up in force to completely reverse BTC’s downward trajectory.
The leading crypto shot all the way up to the 55 hour EMA (pink trendline), where it was contained for some hours before dramatically breaking it early in the morning of June 7 (UTC time).
At time of writing, it seems that $8,000 is holding as a resistance to the shocking day of price action. Volume on the push (Kraken exchange as example, below) has begun to ebb, and the indicators are now definitely overheated to the buy side. A retrace to the breakout point at $7,800 now seems likely – although predictions in this exuberant rally are foolish.
Last night’s price action seems askew of what was starting to looking like a period of correction for the leading crypto, after shocking gains during April and May, with many analysts (including this one) expecting consolidation somewhere in the 7k’s if not lower.
But if Bitcoin wants to stay up near $8k and stabilize there, rather than retrace, it will need to put some key moving averages and levels back under it. The 9 and 21 daily EMAs will probably need to be retaken by the daily, as will the $8,100 level. For a start, a daily close above the 21 EMA would buy BTC some time to stay where it is.
The daily RSI will also need to retake the critical 55 level and get above it. This will prove a major hurdle, and Bitcoin has a lot of work left to prove it can stay at or above $8,000. The close of the June 7 candle will help us get a better picture.
If Bitcoin does decide to take one more leg up – as it is looking fairly stable at time of writing – we can easily see the area around $8,200 as a final point of resistance which the leading crypto is unlikely to break on the present rally (clearly, nothing is impossible).