Bitcoin Price Surges Above $7,100, Next Stop Is $7,400

The Bitcoin price surges above the $7,100 levels today, while less than 24 hours ago it managed to drop to a two week low at $6,468, inciting calls for a revisit to the sub $6,000 zone. However, the digital asset deftly shook off the bears and reversed the course to rally to $7,190.

What is interesting in the Bitcoin news is the fact that BTC now trades slightly above $7,100 and as one would expect, altcoins followed the drop in the BTC price but as it recovered, a number of top altcoins also bounced strongly. For instance, we could see how Ether (ETH) managed a 17.77% gain, while Binance Coin (BNB) and Chainlink (LINK) surged by 11.65% and 15% respectively.

As the Bitcoin price surges above 10% to $7,100, we can see that this is a retracement from the low at $6,480. Now, the BTC price is pushing above the 50 Moving Average (MA) which had been serving as resistance for the past 9 days and a close above this level is crucial or the price can slip back below $6,900 to return to the range of the previous weeks.

Additionally, we can see that previous analysis focused on the need for Bitcoin to flip $6,900 to support and also the importance of clearing the resistance cluster from the low of $6,886 to the high of $7,250. Today’s move to $7,190 has reversed but ticked one of the two boxes. At the time of writing, BTC is briefly above $7,100.

As things stand right now, the next and higher mark for BTC in the future would be the $7,400. If this happens, BTC would have to push towards $7,250 real quick and there is a high volume VPVR node at $7,200. If the bulls push the price through this node, a run up to the 100-day moving average at $8,100 seems probable.

We can also notice how the Bollinger Band moving average is lined up with $8,100 and both it as well as the 100-MA are slightly above the 61.8% Fib level at $7,931. This is why many analysts have called for a rejection at the 100 and 200 day moving average.

In the end, the daily timeframe shows that as the Bitcoin price surges above $7,100, the RSI has also taken an encouraging turn, moving from 45 to 55 at the current time of writing. A bearish outcome is only possible in the cryptonews if the Bitcoin price pulls back to close below the 50-MA or the $6,900 support levels.