Bitcoin Price Rallies By 5% To $8,000, Corrects To $7,900 Now

The Bitcoin price rallies and posts 4-day winning streaks day by day as the cryptonews show a strong momentum. Yesterday, the price of Bitcoin continued its rally from the $7,400 levels and pushed as high as $8,000. Now, the rally seems to have paused and BTC corrected to $7,900 but this is still a good momentum for the dominant virtual asset.

Traders and analysts are now waiting to see if Bitcoin could flip $7,450 from a resistance to support and many suggest that a sustained move above $7,600 would open the door for a shot at the $8,000 and $8,200 range.

The 4-hour close above $7,600 pulled the price of the coin above the 50-day moving average (MA). As Bitcoin price rallies more, the bulls have enough confidence to push the cryptocurrency and make it set a daily higher than the levels seen on November 21 when the asset traded for $8,122.

Currently, the price of Bitcoin is closing in on the 200-day moving average (MA) and this point is also within $40 of the main trend line of the long-term descending channel which formed when Bitcoin topped out at $13,800 on June 26.

As the Bitcoin price rallies, traders will be keeping a close eye on this zone all while the price is experiencing multiple rejections at the trend line. The volume profile visible range (VPVR) also shows a high volume node right at the descending trend line (which is around $8,168) which means that traders could anticipate to push back at this level and book profits.

According to the crypto analyst Philip Swift, the fact that the Bitcoin price rallies suggests that Bitcoin was re-approaching what he describes as the crucial 2-year moving average.

“Still a lot of the day to go for $BTC but on the 10th (!) attempt I think we are finally going to get the close above the 2yr MA. Pump it! “ the analyst said.

Still a lot of the day to go for $BTC but on the 10th (!) attempt I think we are finally going to get the close above the 2yr MA. 

Pump it! https://t.co/x4l1J15HHE
(It's been fascinating to watch price action around this indicator since the Investor Tool was made public) pic.twitter.com/gPzim8b01a

— Philip Swift (@PositiveCrypto) January 6, 2020

Traders are now watching to see if the Ethereum news or the altcoin movements replicate Bitcoin’s rally. What’s more important is whether BTC can rally and hold above $8,000 or a pullback to $7,750 is coming. The overall cryptocurrency market is now at $210 billion and many predict it to visit the $220 billion levels.