Hello traders! Despite the current economic crisis Bitcoin continues to rise, slowly but steadily. In fact, it managed to break above the downtrend trendline after rejecting a 50% Fibonacci support level at $5655.
The downtrend seems to be intact as new higher highs and higher lows are being printed. Considering the recent trendline break, BTC/USDT can be expected to test the 200 Simple Moving Average. This is the area between $7888 and $8000 psychological resistance. This resistance zone is confirmed by 76.4% and 78.6% Fibonacci retracement levels and can be reached in a relatively short timeframe.
The $8000 resistance is likely to provide more cluse on further price development for the long term. This is the key level that should watch either for a rejection or a breakout. Obviously, the breakout would be very bullish for the Bitcoin, while the rejection can result in long term downtrend continuation.
Bias: Strongly bullish while above $5655
Potential Support Zone: $7000 – $7500
Potential Targets: $8000
Have a profitable trading!