Bitcoin – BTCUSD in Consolidation Phase Above $7,000

Bitcoin – BTCUSD retreated yesterday from weekly highs after the sharp rebound on Wednesday  that came mostly of short-covering and not from real buying interest. Bitcoin hit the weekly high at $7,446 after the rebound from six-month lows from $6,400. The previous week sell-off attributed to one of the largest Ponzi schemes in China, the PlusToken.

Bitcoin today is 0.38% lower at $7,122, the capitalization now stands at 130.09 billion. The total cryptocurrencies market cap is 190.63 billion. The volume dropped back to average in the last 24 hours and has reached 23.55 billion.

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$7,000 Provides Strong Support for Bitcoin – BTCUSD

Bitcoin consolidates above the $7,000 mark after the bulls failed to break above the $7,500 level. The strong rebound was only one for one day as sellers stepped in around 7,400 area and pushed the crypto pair.

On the downside, intraday support for bitcoin now stands at $7,072 today’s low. The major support is the $7,000 mark which offered strong bids for many days the previous week and will be the critical level again. In case the BTCUSD breaks below the $7,000 the next support stand at 6,630, while the bears will target the $6,400 the low from December 18th session. Long term support will be met at $6,160 the low from May 17th.

On the other hand, first resistance for bitcoin stands at $7,161 the daily high. If there is an upside break the bitcoin could attempt to surpass the 7,362 high from yesterday’s session. Next barrier to the upside for bulls is the $7,453 high from the December 18th trading session. That will offer a bullish signal and more buyers will join the action if bitcoin breaks that level. A trend reversal point is the 50-day moving average at $7,893, a break above will cancel the negative momentum.

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