After the three failed attempts to break above the Fibonacci level (61.8%) at $7200, Bitcoin finally hit and broke the jinx. Between Monday (April 6) and Wednesday (today), this cryptocurrency has witnessed an increase of $500 in its price, as it surged past the $7,200 resistance mark.
Bitcoin is presently trading at $7300, with a market capitalization of about $134 billion and a daily trading volume of about $47 million dollars.
Bitcoin bulls might have taken advantage of the momentum and make efforts to push the digital coin to where it all started before the severe plunge of March 12, 2020, when it rose to $7,800.
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Due to the rise in Bitcoin price, the market capitalization is finally crossing the $130 billion mark; also, other digital coins joined the Bull Run.
Following the breakout, Bitcoin is now facing a resistance level of about $7500, along with the 50-day moving average line, as the first level of resistance. But in the case where the line is broken, Bitcoin could be reaching higher to about $7700 and even higher to $8000.
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Expert’s comment: Marius Reitz, Luno’s General Manager for Africa, in an email to Nairametrics said, “It was always seen as a psychological barrier, but for Bitcoin to go through the $7,000 barrier and look as though it will be able to maintain this level is very important for cryptocurrencies.
“BTC is now trading at US$7,290 with main commentators suggesting that the coin can now push up towards US$8,000. The other main coins have also found buyers and Ethereum is at US$169, XRP at US$0.169 and Bitcoin Cash at US$254.”
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Why it rises: Reitz explained that there are a number of indicators which could lead to the Bitcoin price continuing to rise.
One of them is that the trading volumes are much lower than what was recently seen but the futures market in Bitcoin has stabilized and is back to expected levels.
“With the price increase, miners are returning and finally, investors will see that cryptocurrencies can rebuild value more quickly than other asset classes,” he added.