The crypto market is in clear recovery after a week of lateral movements that led to the total market capitalization of cryptocurrencies to go below $200 billion. Now, Bitcoin is in a clear recovery phase as the cryptocurrency breaks above the USD 7,500 resistance level, and it seems to be on track to stay above this level.
For now, the market cap of the entire ecosystem seems to have stopped the downward trajectory embarked on in the last few days, and everything seems to indicate that a good market sentiment is beginning to surface as the capitalization moves above $200 billion.
At the time of writing, the price of the main crypto-asset according to the CoinMarketCap price index is about USD 7,575.96 per unit, with an increase of +2.27% in the last 24 hours and its Domain SI at 67%. This sets alarms for closing long positions on many exchanges.
For now, the leading cryptocurrency is forming solid traction above USD 7,500 levels. The positive news from large institutional investors such as the New York Stock Exchange which was announced yesterday has undoubtedly given the crypto market a positive boost.
The new that 8 former workers of the investment bank Morgan Stanley are establishing a crypto derivative platform also boosted the price of the main assets of the market.
Led by 8 former Morgan Stanley Executives, Phemex is building the world’s most trustworthy #crypto derivatives trading platform
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— Phemex (@Phemex_official) December 6, 2019
This allowed the trend on BitMex to give BTC price upward sentiment in the market, after breaking USD 7,500 levels when the first purchase of contracts for USD 4,279,093 at USD 7,513 was settled in Short.
On the 4H graph of the XBTUSD pair on BitMex, Bitcoin price managed to temporarily break the immediate resistance located at the USD 7,576.00 levels, after the BTC price recovered from its last swing to the green zone where it touched lower levels to the key support (EMA 21) of USD 7,344.93.
In addition, in a couple of perfect opportunities, BTC tested the levels of USD 7,576.
Now the price has generated a positive slope configuring a perfect bullish channel after a clear S-H-S pattern. If BTC continues to gain ground with such momentum, we could see its price at higher levels close to or break above USD 7,742.36.
If the price manages to take advantage of the good FOMO around the ecosystem and allows the bulls to take control, we would be predicting that Bitcoin would reach the psychological barrier of 8k by the middle of the month, and a few days after the end of the year, we could see a double-digit recovery up to desired levels of USD 8,393.00
In the most unfavorable scenario, we would bring the price back to the green zone, between the bands of USD 7,087 – 7,344.
To corroborate Bitcoin price recovery behavior, we look at the technical indicators for the same chart above. In that sense, the Aroon indicator is showing its bullish signal at the top of the chart, with its bearish signal at the bottom of the chart with no symptoms of showing a change in trend for now.
RSI points out the increased interest of investors in the purchase of Bitcoin, with values that already reach 60 and are projected to rise in the next few hours.
In that sense, the moving average of the Bollinger Bands point to USD 7,400.47 as the key support of BTC, as the last sail managed to test the immediate resistance above USD 7,500. Bullish behavior seems to be approaching in the next movement for the indicated time frame.
Does History Repeat Itself?
Although Bitcoin has remained practically all year long with levels very far from its historical highs, precisely at this moment in the weekly chart a pattern is being repeated that could encourage the resurrection of the price of the main market reference.
The cyclical pattern that characterizes the assets, is showing that we are at the beginning of an upcoming bull run that could mark a new ATH.
If the pattern of the year 2017 is repeated, then we must expect that next year BTC could enter into a sustained price growth that would take it to a maximum ATH of average levels in the 26k.