Some fundamental and technical indicators have sparked a rally in BTC price this week. Bitcoin found support at $7,400 earlier and is poised to test the $8,000 mark in short order. Is a rally coming soon?
Bitcoin (BTC) Price Today – BTC / USD
Sell in May and walk away
The trading patterns of stock markets are represented by the adage ‘sell in May and walk away,’ but this does not apply to bitcoin price pattern in any way. In the past, BTC has generated larger returns during the summer season. In 2014, bitcoin price rallied in July and fell in August, and this was the only time this happened.
Even though BTC has rallied for more than 48 hours, the gains for this month have been decent compared to previous years. The outlook for August is rosy and suggests that prices could be ready to break out soon.
Even though past performance doesn’t guarantee success in the future, seasonality has a role to play in understanding financial markets.
BTC price levels
After dipping briefly, bitcoin price has found support on Thursdays and currently hovers around $7,400. The trading volumes are currently at a healthy $5.6 billion comfortably above the minimum threshold, which usually follows a major rally attempt.
The digital currency trades near 40-day highs. The bulls could be better placed to extend the rally to $8,000 following the successful resistance of $7,200. This level has eluded BTC.USD for more than two months.
The founder of Digital Currency Group, Barry Silbert has stated that the price of bitcoin has bottomed as traders hope to stake their market positions. Silbert, in an interview with CNBC, stated that the bears ran out of energy while acknowledging that BTC has overcome the overwhelming FUD.