Search ForexCrunch
  • Bitcoin price consolidation above $7,000 could culminate in gains above $8,000.
  • The majority of technical indicators paint a bullish picture for Bitcoin both in the short term and long-term.

The market is back in the red on Wednesday during the Asian session. Bitcoin is posting minor losses of 0.01% on the day after commencing the trading at $7,161. It has an intraday high of $7,173, although the world’s largest crypto has touched a low of $7,149. The ongoing trend is bearish according to the cryptocurrency live rates amid high volatility.

The formation of an inverted head and shoulder pattern is a bullish indicator that Bitcoin’s consolidation above $7,000 is likely to end up in a rally or a significant push above $8,000. Following the break above the supply zone at $7,400, BTC/USD could quickly blast its way to $8,200.

The RSI position above $50 paints a relatively bullish picture for Bitcoin. It’s gradual slope upwards is a signal that the momentum is in favor of the bulls. Protecting the immediate downside is the 100 SMA on the 1-hour chart. The 50 SMA is in line to offer support at $7,048. Other vital support areas include $7,000 and $6,800, while $6,500 is the primary buyer congestion zone.

BTC/USD 1-hour chart