If there is anything worth talking about today, it surely is the crypto space. Bitcoin has crossed the $7K and it is trading near $7,500. Year to date, we are still down by -47.85% but the $600 move in sixty minutes (yesterday) for Bitcoin was a remarkable one. The sellers in the OTC market are holding off their Bitcoin as they believe that the price is going to go high . On the other hand, buyers are eager to find sellers so that they can buy low and sell high.
The question is what has instigated this move?
As I said yesterday, the suppressive bear market conditions are fading and with yesterday’s move (especially if the momentum continues at this pace), it will be only a matter of time before the bear market is forgotten altogether. Remember, the FOMO (fear of missing out) element for Bitcoin is very strong and it drives the trading action aggressively. Regulatory space is becoming more digestible for cryptos, countries like Japan which has shown a much tougher attitude towards cryptos in the past are becoming friendlier. For instance, the fact that SBI, a major financial firm in Japan, opened its crypto exchange for traders says it all.
In terms of technical analysis, the next major resistance for Bitcoin is $7,749, the high of 7th of June. On a daily timeframe, the price is having a battle with its 100-day moving average which is at $7,495. The 200-day moving average is trading at $9,575 which would serve as the next resistance. Of course, the price would have to clear the psychological level of $8,000 first before targeting the 200-day moving average.
In terms of volume, it has reached a 3-month high as the price has taken out the $7K mark. This tells me that the current move is here to stay because of serious conviction behind it.
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