Bitcoin trades above $71,000 after rebounding in the last few hours, with strong dominance from bulls. The crypto asset could build on current price action towards a previous weekly high of $76,000 to $80,000.
Key Takeaways
- Bitcoin rallies from key support zones towards highs, as the crypto asset could build on current market sentiment to reach new highs.
- US and Iran ceasefire news could help boost the financial market, as crypto assets are gaining a strong market rally.
- Oil saw a 6%+ crash following news that the Strait of Hormuz was closed, bullish indicators, and predictions of strong BTC highs.
BTC Market Structure Point as Short-term Reversal
Source – Bitcoin Breakout on 4HR Timeframe from TradingView
The price of Bitcoin over the last couple of weeks has traded in a range amid significant market uncertainty stemming from the US-Iran war. However, the news of a two-week ceasefire in the Middle East war, which had been circulating for weeks, has gained strong momentum, allowing BTC to break out of its range, rising from $65,000 to a high of $72,000.
Bitcoin’s price currently trades above the 50-day and 200-day Exponential Moving Averages (EMAs) on the 4hr timeframe, and could trade higher towards a range of $76,000 to $80,000, which could act as resistance. Current price action for the crypto asset looks bullish as the price could see a slight market retracement towards $67,500 before a rally towards such a high.
This price action aligns with on-chain data and price indicators for BTC’s movement in the coming days.
On-chain and Bitcoin 4-week RSI Indicate Possible Reversals
BTC’s Relative Strength Index (RSI) on the 4-week timeframe has suggested the crypto asset could see a potential reversal to the upside, as previous historical data show that when BTC’s 4-week RSI hits a bottom, the price rallies to considerable highs. With current price action playing out, speculations point at price rallying to new all-time highs.
Further on-chain indicators have also highlighted that crypto assets are dominated by long-term holders, despite the price trading around $60,000 over the last few weeks. With all these indicators and data pointing to a price reversal, a rally to prices above $95,000 to $100,000 could signal a complete market reversal to new all-time highs of $126k for Bitcoin.
Key BTC Zones to Watch
The price of BTC trades above $70,000 but could see a price retrace into key zones around $67,500, acting as demand before rallying towards $76,000 to $80,000, which would act as key resistance for overall price action.
FAQs
Why is BTC going up
BTC is going up today as a result of the news of de-escalation between the US-Iran war as this event has affected the financial market in the last few weeks.
How does oil affect Bitcoin?
Oil prices do not directly affect Bitcoin prices; however, a scarcity of oil could affect the global energy market, which could also affect Bitcoin mining, allowing demand for the crypto asset to grow as the price gains some momentum to the upside.
Related Read
US and Iran Agree 2-Week Ceasefire – BTC, Gold, and XRP Hit $71k, $4,800, and $1.35
Bitcoin Crashes to $68k as Iran Threatens to Shut Down the Strait of Hormuz
XRP Price Prediction – What Happens to XRP Price if BTC Trades at $50k?
