Bitcoin (available on Coinbase) Price Watch: Earlier this morning, Bitcoin (available on Coinbase) price surprisingly soared by over $1,000, even surpassing the $8,000 mark at one point. This is the first time in two weeks that Bitcoin (available on Coinbase) price reached $8,000.
As of 12 PM EDT, Bitcoin (available on Coinbase) is trading at close to $7,600. Before today, Bitcoin (available on Coinbase) price has been sitting below $7,000 for the entire week.
According to experts, today’s price movement was likely a result of traders who had previously bet against the cryptocurrency buying back into the market.
“The ratio of short margin trades versus longs has been increasing recently,” said Nick Kirk, quantitative developer and data scientist at Cypher Capital, a cryptocurrency trading firm. “Buying volume ticked up today and a lot of these short trades got liquidated, helping fuel the rally.”
BTC/USD Primed For Q2 Breakout
Following today’s price surge, Bitcoin (available on Coinbase) may be on the verge of a major breakout in the second quarter of 2018. Based on historical charts, BTC/USD gained around 130% during Q2 2017, its best-performing quarter to date. Hence, chances are Bitcoin (available on Coinbase) could replicate that this quarter as well, especially as it has been underperforming throughout most of the first quarter.
At the moment, Bitcoin (available on Coinbase) price is holding steady, establishing a major support of $7,600, which is also close to its 20-day moving average. The major resistance point is $8,000, and another breakthrough above that could see Bitcoin (available on Coinbase) approach $8,500 next.
Source: Tradingview
For the technicals, The MACD indicator is not displaying a bullish signal at the moment, and everything points toward a neutral sentiment. The RSI indicator shows that Bitcoin (available on Coinbase) is severely oversold. In addition, trading volume has been low, so this cannot be attributed to today’s sudden price jump.
Looking at the Technical Indicators:
Hourly MACD & RSI — Neutral
Major Resistance Level — $8,000
Major Support Level — $7,600
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