Bitcoin price is gradually nearing the $8,000 psychological level, having extended gains to the $7,800 area on Monday. Just below the important barrier, the 100- and 200-daily moving averages converge, making this area a potentially strong resistance. Considering a modest upside momentum, BTCUSD could attract profit-taking around the round figure.
After a weekend consolidation above $7,500 region, the largest cryptocurrency by market capitalization registered fresh March 12 highs at the start of the week, with bullish bias persisting not far from the $8,000 handle. The daily RSI is further pointing upwards but remains in the neutral zone so far, suggesting the upside potential hasn’t been exhausted just yet.
The recent recovery above the 50-DMA served as a catalyst for bulls and opened the way to $7,000 and higher. On the other hand, the volatility is too low at this stage to bet on a strong rally above the mentioned resistance, especially as there is another barrier on the way north in the form of the mentioned moving averages.
Fundamentally, the digital currency may receive support from the upcoming halving due in May. Many traders continue to expect BTCUSD to rally before and after the event. As the halving is nearing, the volatility could pick up again and send the token above $8,000. Once the potential breakout is confirmed on a daily closing basis, the cryptocurrency will target the $9,000 figure next.
On the downside, should the current upside trend reverse, support is expected at $7,500, $7,300, and $7,100. At this stage, bullish risks continue to prevail, at least in the short-term timeframes. In the weekly charts, the technical picture continues to improve but the pair is still trading below the 50-SMA around $8,700. Once above, the digital may easily regain the $9,000 handle.
In the immediate term, the prices need to overcome the $7,800 region in order not to lose the upside impetus and avoid a downside correction to $7,500 and lower. The picture in the daily charts remains positive as long as bitcoin stays above $6,700, where the 50-DMA lies.
