Bitcoin’s intense overnight rally has stalled within the lower-$7,000 region, as the benchmark cryptocurrency has been unable to surmount the heavy selling pressure that has been firmly established just above its current price region.
Its inability to push higher despite the overt bullishness of its swift rebound from lows of $6,600 may stem in part from the fact that the crypto is now approaching a critical technical resistance level.
There are a couple factors that could help BTC shatter this level, however, with an untapped supply zone and resting liquidity on the upside being two influences that analysts are currently looking towards.
Bitcoin’s Rally Stalls At $7,000 as Daily Close Fast Approaches
At the time of writing, Bitcoin is trading up just under 5% at its current price of $7,025, which is the price at which it has been trading at in the time following this morning’s slight rejection at highs of $7,200.
BTC is currently trading up significantly from daily lows of under-$6,600, with the strong support established at this price proving to be enough to push the cryptocurrency higher.
The horizontal resistance that has been found between $7,200 and $7,500 throughout the past two weeks is showing no signs of degrading anytime soon, and today’s rejection further confirms this.
Bitcoin is also currently pushing up against its MA50 on its daily chart, which is also providing it with some meaningful resistance.
One pseudonymous trader on Twitter spoke about this level in a recent post, explaining that a break above it before the daily close “would be notable.”
“BTC – first intraday break of the MA50 daily chart…a close above would be notable,” he explained.
Image Courtesy of Big Chonis
These Technical Factors Could Push BTC Above Its MA50
In spite of the signs of weakness that Bitcoin is flashing as it struggles to navigate through the lower-$7,000 region, it is important to note that there are a couple technical factors that could help propel it through its MA50 and its horizontal resistance.
Another popular trader on Twitter pointed to these factors, specifically referencing an untapped supply zone and some resting liquidity just above BTC’s current price.
“BTC: 12H broke MS to the upside after sweeping Monday’s low into a pivotal level. Resting liquidity to the upside along with a remaining inefficiency and untapped supply. I’m favoring longs at the moment,” he explained.
Image Courtesy of HornHairs
The imminent daily close in the coming couple of hours should offer significant insight into the mid-term significance of this latest overnight push past $7,000.
Featured image from Unsplash.