- Bitcoin brief consolidation pays off as buyers recover lost ground above $6,400.
- BTC/USD targets $7,000 in the medium-term in line with the predicted end year rally.
The market is painted in green today. The consolidation over the weekend has paid off greatly. In fact, the entire crypto market has added a massive $14 billion in a single day. The last week saw cryptocurrencies lose their feet and tumble past lifesaving support areas. Bitcoin, for example, dropped massively from slightly above $6,500 only to defend the support at $6,600 after trading lows of $6,060.
Bitcoin was stuck in a range below $6,250 while strongly supported at $6,100. The short-term trendline resistance also limited the gains around the same level. Besides, both the 50 SMA and the 100 SMA did not make the situation easy for the buyers. However, a breakout occurred around the opening of the session on Monday 15. BTC/USD sprung up in two bullish engulfing candles. The bulls reclaimed several broke support levels at $6,300, $6,400 and eventually broke above $6,600 before coming to a halt on testing $6,700.
At the moment, Bitcoin has corrected lower from the intraday high. Nevertheless, the bulls seem to be reaffirming the support at $6,400. There is a bullish move above this support with BTC/USD currently exchanging hands at $6,421. Technical indicators are still sending bullish signals. The MACD is deep in the positive region while the RSI has retreated from the upper green region and is ranging at $60. It is likely that Bitcoin will recover above $6,500 in the near-term and correct above $6,600 in the medium term. Besides, buyers have eyes on $7,000 as they wait for the end year surge (based on predictions).
BTC/USD hourly chart-636751908653501530.png)
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