Despite going through a death cross in the weekend, bitcoin value is set to rise as the cryptocurrency is now targeting gains beyond the $7,000 mark. The technical indicator was confirmed through the weekend, and as speculated by CoinDesk, the overstretched conditions appear to have put a floor beneath bitcoin value. As of when this report was written, bitcoin price Index on CoinDesk was seen at $7,040, after previously clocking at $6,443 on Sunday. The cryptocurrency was moving around $7,060 on Bitfinex which is a 9.88 percent increase from the low of $6,425 on Sunday.
The death cross was called on Saturday, although it didn’t do any significant damage to the price of bitcoin. Bitcoin stayed clear of a break beneath the confluence of the growing trendline and rising weekly 50-MA, despite reports of oversold conditions. It may seem that the cryptocurrency has reached short-term low trading at $6,425 but could clock $7,500-$7,600 within the next few days.
Bitcoin has breached its descending trendline, but a clear break beyond $7,100 would add credibility to the RSI divergence thus allowing a rally of up to $7,500-$7,600. However, further gains have been ruled out on the short-term, because the 10-day MA is sloping downwards
Daily chart II
The 5-day MA with 10-day MA remain bearish, but a sustained rally of nearly $8,000 and beyond is likely only after they have phased out.
Bitcoin seems to have reached a temporary low after trading at $6,425. But a break beyond $7,100 can automatically yield up to $7,600. Further gains aren’t beyond reach and will likely happen after the 10-day MA and 5-day MA have shed bias.
Looking at the downside, clocking at $6,425 is a fast support, (and if breached) will make way for a re-test of the $6,000 low in February. However, the bears will find it difficult taking out support $6,425, because of the short-term oversold conditions.