Bitcoin’s price was stuck in a narrow range below $6,800 for 20 straight days. It finally surpassed $7,000 early on Tuesday. The traders did not worry too much about it as they are well aware that periods of low volatility often come to a boisterous end. However, bearish bitcoin future betas had hit a record low yesterday, signaling that investor sentiment was beginning to shift into bullish mode.
The news of the SEC’s decision to reject several ETF proposals did not have any effect on prices. This was a sign that the bearish market pressure was reaching exhaustion. After closing a 4-hour session above the elusive resistance zone of $6,700-$6,850, the bulls continued to ultimately pass the peak of 22nd August.
According to the CoinDesk Bitcoin Price Index, bitcoin is currently trading at an average price of $7,064 across exchanges. Bitcoin price reached the peak point of $7,070 today so far. A short-term pullback is considered to be healthy because it proves that it can hold as support. The daily chart depicts that the price may move to around $7,600. This low has hit a new mark for bitcoin is defending its first higher low on the daily timeframe since 3rd April. The momentum is shifting towards the bull as the 50 and 100 days EMAs form a bull cross. This is indicative that the bears will no longer be in focus.
Bitcoin’s hit at the new higher low is a sign that could fuel a move towards the 200 days EMA at $7,800. The short-term trend has set the stage for a move to the prior resistance zone of $7,400 the longer term. Finding acceptance below prior resistance at $6,550 would negate the short-term bullish.