Bitcoin price just exploded back above $7,000 despite increasingly bearish sentiment taking grip across financial markets, and a crypto market experiencing the longest stretch of extreme fear yet.
After stocks tanked and oil fell below negative, the expectation was that crypto would soon follow, but an ascending triangle formation just helped propel the first-ever cryptocurrency higher. But the question remains: where to next?
Ascending Triangle Target Reached, Bitcoin Price Reclaims $7,000
Bitcoin price just completed an ascending triangle formation on the 1-hour timeframe, resulting in a powerful push above $7,000. Ascending triangles are primarily bullish patterns, and lead to a rise equal to the height of the formation.
In minutes, Bitcoin pushed well over $100 to just under $7100 as of the time of this writing and is currently struggling to reclaim overhead resistance at $7,100 through $7,200.
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The bullish movement comes in parallel with the stock market, which continues to rebound from lows set on Black Thursday last month. The correlation with the stock market continues in crypto, but this could bode well for Bitcoin if the stock market continues to recover with each round of stimulus boost added to the economy.
However, crypto analysts are still eyeing an eventual break in the correlation between the asset classes.
Which Levels To Watch and What’s Next For Cryptocurrencies
For now, if the correlation continues and the stock market pushes onward, Bitcoin could make an attempt at revisiting highs lost from earlier this year.
At the start of 2020, Bitcoin had reclaimed $7,000 then quickly blasted its way above $10,000, where the cryptocurrency failed to hold. A retest of support around $8,000 is possible if Bitcoin price can break above $7,200, and $7,500, but the real push would happen after a clean breakthrough $8,000.
Such a move would cause the asset to rip toward $9,200, where the March breakdown escalated into a devastating collapse to below $3,800.
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The leading cryptocurrency by market cap is still trading well above those levels, nearly doubling from the extreme lows set mid-March. However, with Bitcoin’s halving ahead, the price action was expected to be more bullish than it has been.
Instead of Bitcoin trading below $5,500, the asset was expected to trade somewhere northward toward $55,000 by May 2020. That’s just days away, and Bitcoin price is barely over 10% of that.
Things are looking bleak for Bitcoin price with a recession looming, however, the devaluation of the dollar could help Bitcoin shine in this darkest hour. Only time will tell, but with things at such a pivotal point, it could be make it or break it time for the first-ever cryptocurrency.