Bitcoin surprised most this week by not descending into the depths, some analysts believed $3000 was on the table. I would agree that the current crisis in Italy is to blame for the shift in momentum, currently there is solid resistance at $7600, lets take a look.
It is important not to pop the champagne yet, even though the market has found support above $7200 and momentum is shifting. The Bitcoin market is still under a lot of bearish pressure and the bulls will have to keep on working hard to tip the scales.
There is a potential bullish channel forming should the Bitcoin price consolidate above $7600 going into the weekend and next week. We can see that the MACD indicator on the 1 Day candle chart, could be getting ready to produce a buy signal, which will get some longer term traders interested in the market.
As we know political situations rarely resolve themselves in a couple of days, and with the Italy elections on the way, it could make the EU markets shaky for a while. With that said we will keep an eye on how much capital is flowing into crypto over the next month, to confirm this trend .
Keeping the above mentioned in mind, consolidation above $7600 will most likely push prices towards $8000, where we will hit the psychological resistance level left over after the previous bloodbath. Should we fail to push higher, it is quite possible that we will retest the lower $7k zone again. Safe trades.