Bitcoin price is trying to balance at $7,700 after $7,900 became impenetrable. The largest digital asset has been focused on rising above $8,000 in the last couple of weeks. Buyers are hoping to take advantage of the block reward halving, which will take place in 14 days. Speculation regarding the event is growing as well. Google trends indicate that searches related to Bitcoin halving are higher by 33% when compared to those in 2016 during the second halving.
As halving approaches, the price is expected to increase significantly due to investors taking their positions in readiness for the post halving rally. Bitcoin has been predicted to hit levels above $20,000 in the months following the halving. Some predictions go as high as $250,000 (from Venture Capitalist Tim Draper). Other analysts such as PlanB believe that Bitcoin has the potential to hit highs of $80,000 by 2022.
Bitcoin Price Technical Picture
Bitcoin is trading below the 200-day SMA (initial and key resistance zone), which forms a confluence with the 61.8% Fibonacci retracement level taken between the last swing high of $10,546 to a swing low of $3,856. Movements to the north have not been able to overcome the seller congestion at $8,000. Instead, BTC/USD has retreated to $7,718 (market value on Coinbase). The zone at $7,700 is functioning as the initial support area as bulls work hard to pull the price above $8,000.
BTC/USD daily chart
Meanwhile, the RSI has slowed down the movement towards the overbought region (70). The leveling above 60 suggests that consolidation is likely to take center stage. BTC is also trading within the confines of an ascending channel. Besides, the recent breakout above the 50-day SMA confirms the influence buyers have over the price. Therefore, a spike above $8,000 is still possible and will also work as a stepping stone to $9,000.
Bitcoin Intraday Key Levels
Spot rate: $7,718
Relative change: -74
Percentage change: -1.02%
Trend: Short term bearish bias
