Bulls finally gave up their positions.
Bitcoin has surged above the $7,000 handle
Last week was super optimistic for the crypto market. Despite the global uncertainties which pulled all of the risky assets down, Bitcoin started to rise. The rise of the oldest crypto began on Thursday when the price managed to break above the resistance zone near the $6,000 level. On Sunday, bulls pushed Bitcoin above the $7,127 level and even managed to test the highs above the $7,408 level. However, they could not hold their positions for a long time, as the price for crypto has entered the correction phase. At the moment, it is falling towards the support at the weekly pivot at $6,763. If bulls regain their strength, they will try to push the price of Bitcoin to the resistance at $7,408 once again.
If we look at oscillators, we can see that RSI and Stochastic show that the market is overbought. Moreover, there is a crossover between the Stochastics indicator and the average line, this is a sell signal.
What are the reasons behind this bullish surge?
There are no clear reasons for the current rise of the crypto asset. Analysts mention a combination of different factors which resulted in the upward movement. Here are the main of them:
· The Boston asset manager company Fidelity investment announced the start of buying and selling operations for its institutional customers. Institutional interest is always considered as positive for Bitcoin.
· Increased sentiment in the crypto community driven by optimistic announcements.
· The increase in the number of unspent transactions, which means that there are more holders than sellers.
The bullish pressure pushed the other top coins higher. Here are the current prices for them (updated at 13:40 MT time):
Litecoin – 86.55
Dash – 132.67
Ethereum – 191.7.
This week may be the most important since the year started as the Fed assess the economic outlook and the US presents fresh NFP readings.
S&P Global, a private banking company, will release a monthly change in British Flash Manufacturing Purchasing Managers Index (PMI) on January 24, 11:30 GMT+2. The index is a leading indicator of economic health as businesses react quickly to market conditions, and purchasing managers hold the most current and relevant insight into the company's view of the economy.
The United States Bureau of Labor Statistics will publish the US Consumer Price Index (CPI) m/m on January 12 at 15:30 GMT+2. The index measures a change in the price of goods and services purchased by consumers.