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Bitcoin Price Breaks $7K But Must Defend it to Avoid $5.2K — Analyst

bitcoin-price-breaks-$7k-but-must-defend-it-to-avoid-$5.2k-—-analyst

A fresh breakout by Bitcoin Monday may yet prove temporary as a Cointelegraph Market analyst warns of major downside potential.

Bitcoin (BTC) finally retook $7,000 on April 6 after days of posturing culminated in a sudden surge as the new week began.

Cryptocurrency market daily overview. Source: Coin360

BTC price exits $6K… again

Data from Coin360 and Cointelegraph Markets showed BTC/USD exiting the $6,000 range in a snap move which took markets to three-day highs of $7,080.

While holding at press time, it remained to be seen whether Bitcoin could sustain support at $7,000, or whether the latest push would copy others from last week in fizzling in a matter of hours.

Bitcoin 1-day price chart. Source: Coin360

The impetus for Bitcoin’s newfound strength was not immediately clear. On Sunday, traditional markets futures had risen sharply, while analysts warned that fresh uncertainty about oil production could spark a heavy reversal of last week’s gains in the sector. 

Market uncertainty has increasingly benefitted Bitcoin in recent weeks. As Cointelegraph reported, the cryptocurrency managed to maintain roughly 70% gains versus its deep low of $3,700 from March 12. 

Van de Poppe: $7K must become support

On Monday, BTC/USD was at a critical stage for Cointelegraph Markets analyst Michaël van de Poppe. If a zone between $6,966 and $7,217 could become firm support, he argued on Sunday evening, it would be a key factor in changing his otherwise bearish position.

He summarized:

“If not, I’m still aiming to see $5,200 and perhaps lower. Rising wedge with decreasing volume going into resistance in a downtrend.”

A survey by van de Poppe showed that the majority of social media followers still favored Bitcoin hitting $6,400 before $7,600.

Last week, meanwhile, veteran trader Tone Vays said that he remained confident about more significant Bitcoin price upside hitting at some point in April.

Keep track of top crypto markets in real time here

Written by btcethereumadmin

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