Bitcoin has finally broken through the significant $8,000 price level that has proven to be particularly strong resistance for the past few weeks. Yesterday evening a small burst of volume pushed the Bitcoin price from $7,992 straight up to $8,161 within 15 minutes. It has since leveled out and has been trading just above $8,100 throughout the day.
Although the move represents less than a three percent gain, the psychological break above $8,000 could be pertinent in bringing buyers back to crypto. Bitcoin has broken above $8,000 twice already this year but both times it fell back below soon after. However, the question is – will it hold and could this be a ‘third-time lucky’ event?
What are the analysts saying?
Barry Silbert, the head of possibly one of the most influential groups in crypto, the Digital Currency Group (DCG), recently noted his positive outlook for Bitcoin going forward. Speaking to Bloomberg, Silbert detailed the often-cited ‘rollercoaster’ like movements of Bitcoin and its previous four recoveries after making similar 80 percent losses.
“If you look at the price for Bitcoin, it looks like perhaps we’re coming out of the crypto winter and we’ve entered the crypto spring,” he concluded. In the interview, he also discussed how the younger generation is looking for more advanced methods of investment and the likelihood that $68 trillion in inherited gold stocks could move into the crypto space.
Rob Sluymer, a technical analyst at Fundstrat Global Advisors, the crypto firm co-founded by Tom Lee, also sees more gains for Bitcoin in the future. He says the firm now expects Bitcoin to make another run for $9,000 following evidence that “another upside attempt appears to be developing.” In the interview, also with Bloomberg, Sluymer points to how the momentum of Bitcoin’s relative strength index is beginning to turn upward and suggests that now is a good time for investors to accumulate more assets.
Bitcoin Price Analysis
Bitcoin has not only managed to break above $8,000 but has continued all the way through $8,100. This means resistance has now been confirmed at $8,200, the 23.6% Fibonacci retracement and 1-day Bollinger Band middle line confluence point.
If a correction below $8,000 occurs, support should be found around previous resistance at $7,800 and at the 1-day Bollinger Band lower boundary of $7,450. The relative strength index (RSI) remains neutral at 54.7 but the MACD level at 157.22 suggests a possible retracement below $8,000.