Bitcoin Finds $7,000. Can the Week Deliver an $8,000?

Finally some positive news from the cryptomarket, with Bitcoin gaining 3.13% for the week, Monday through Sunday, the gains for the week coming off the back of a solid weekend that saw Bitcoin gain 1.82% on Sunday and a 4.25% rise on Saturday.

Bitcoin closed the weekend at $7,029.9, the first time Bitcoin managed to hold at $7,000 through to the end of the day since Wednesday, with an intraday high $7,104.52 testing the day’s first major resistance level of $7,118.82, while a morning $6,894.8 low held well above the first major support level of $6,650.68.

The weekend’s moves followed 3 consecutive days of losses, providing further evidence that Bitcoin may have bottomed out over the short-term on Friday, with a lack of materially negative news providing much-needed support. A short-term bullish trend has formed at Friday’s $6,510 low, with Sunday’s high moving through the 23.6% FIB Retracement Level of $7,078.7, while the longer term bearish trend formed at 21^st March’s $9,188.1 swing is still intact.

Sidelined investors were certainly drawn in, with Bitcoin’s market cap recovering from Saturday’s $112.47bn 2018 low, though there’s a long way to go for a full recovery, with Bitcoin needing to move through the 38.2% FIB Retracement Level of 7,481.8 and take a run at $8,000 levels for the longer-term trend to reverse.

The good news was that Bitcoin managed to avoid a late sell-off, with the Cboe Bitcoin Futures April contract mid-$6,000 level close on Friday having little influence late on Sunday.

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At the time of writing, Bitcoin was up 1.36% to $7,119.4, as the positive momentum from the weekend continued through to the start of the week.

An early morning rally saw Bitcoin hit an intraday high $7,170.8, moving through the 23.6% FIB Retracement Level of $7,077.17 and the day’s first major resistance level of $7,124.68, before a pullback to an intraday low $7,023.9, with support at the $7,000 psychological level providing the needed boost to avoid a pullback to sub-$7,000 levels.

News of Japan’s financial regulator ordering two crypto exchanges to halt trading for a 2-month period due to lax KYC procedures did little to bring the recovery to a halt, the outcome to the inspection into crypto exchanges likely to have been considered a positive, with no exchanges ordered to close indefinitely.

For the day ahead, Bitcoin’s hold above the 23.6% FIB Retracement Level could be tested later in the day if there are no moves through to $7,200 levels to test the 2^nd support level of $7,219.46, with support at $7,000 seen earlier in the day likely to be tested in any pullback, though much will depend on the news wires and sentiment across the broader market, which remains positive at the time of writing.

Bitcoin’s gains over the weekend will likely limit the influence of the futures market through the day, with the Cboe Bitcoin Futures April contract up $555 to $7,160 this morning, the gains being driven by Bitcoin’s moves through the weekend and into early Monday.

Elsewhere, NEO was up 9.26% in the early part of the day, with Ethereum up 4.69%, while DASH, Litecoin and Bitcoin Cash saw more than 3% gains through the morning.

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