On Sunday Bitcoin (BTC) price revved up to rally from $7,115 to $7,642, providing a 7% gain and an unexpectedly strong weekly close, which now has some analysts suggesting that a trend reversal is in the making.
Cryptocurrency market daily overview. Source: Coin360
The strong upside move brought the price above the $7,400 and $7,600 resistance, meaning traders will now look for the price to close above $7,600 and then have a go at the $7,800 resistance.
Bitcoin CME Futures chart. Source: Tradingview
Given that the move took place on Sunday, there is now a CME futures gap at $7,230, which according to recent price action will likely be looking to get filled at some point in the future.
BTC USD daily chart. Source: TradingView
The price halted right at the 50-day exponential moving average (DMA) and traders will have noted the bullish divergence on the daily moving average convergence divergence (MACD) and the gap on the volume profile visible range (VPVR) from $7,616 to $8,000. If the price can pull above the 50-DMA, additional gains to $8,000 seem likely.
BTC USD 4-hour chart. Source: TradingView
The move to $7,600 also appears to have put off the chance of Bitcoin price revisiting recent lows below $7,000 and the 4-hour chart shows that the price needs to cross back above $7,600 and set a higher high above $7,850.
This assessment aligns with previous analysis by Cointelegraph contributor filbfilb who suggested that:
“In order to be reasonably bullish in this market, Bitcoin needs to begin closing and finding support above key resistances, in particular, that of $7,600 on the weekly.”
He also explained that “a higher-high over $8,000 and key moving averages trending higher” could signal a sharp change in the current bearish trend that Bitcoin price remains stuck in.
Bitcoin 1-day price chart. Source: Coin360
Weekly volume and open interest chart. Source: twitter.com/BakktBot
Meanwhile, Bakkt monthly volume continues to push higher, up 46% since November and currently at $110 million.
The overall cryptocurrency market cap was $199 billion as Bitcoin’s dominance continues to creep higher to 68.9%.
The views and opinions expressed here are solely those of the author (@HorusHughes) and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.