Bitcoin – BTCUSD managed to reverse the sharp losses from yesterday’s session as it adds over 3.80% at $7,210. Yesterday the bitcoin broke below the support at $7,000 mark and hit the low at $6,900. Today BTCUSD started the Asian trading session with losses hitting the low at 6,850. The last two hours the bitcoin price made an impressive U-Turn and surged above the 7,000 mark.
Many analysts believe that the BTCUSD reversal was mostly due to attacks on Iranian army leaders, as the sharp rebound started just after the headlines crossed the wires. U.S. airstrike killed Iranian army general Suleimani, thus increasing the US-Iran tensions and raising fears of a new war.
Bitcoin – BTCUSD managed to cancel the last hours the negative momentum that formed after the bitcoin breached yesterday the critical $7,000 support. Now the crypto pair have built a strong support zone at $6,850 and crypto traders focus has shifted to higher levels.
On the upside, first resistance stands $7,265 the daily top and the upper bound of the descending triangle formed the last week of December. Next supply zone will be met at 7,309 the top from December 31st. If BTCUSD breaks higher it will face the resistance at the $7,388 the 50-day moving average.
On the flip side, the strong support at the 7,000 round figure is first support. In case the crypto pair breaks below, then the downtrend might accelerate targeting the daily lows at 6,860.