Bitcoin Surges Past Resistance

Submitted by Joey Wagner on Monday, April 6, 2020 - 18:44.

Bitcoin is reacting to markets rallying today. Some of which like the U.S. indices are surprisingly all trading up over 6% at the close, I say surprisingly because I believe it is unwarranted. Experts say that the equities are responding positively to news that Europe may have passed its apex of new Covid-19 cases meaning that the new cases by day should start to decline. In the U.S. the apex is expected to occur on or around April 15th.

All of this has pumped enough momentum into Bitcoin that futures have surged past the recent resistance at the 21-day exponential moving average. Bitcoin futures on the CME are up over 8% or $550 at $7,350 as of 4:00 PM EST. I believe we will in fact see pricing make a play for the $8,000 level this week.

We may have seen a rise in equities but have doubt in its longevity, on the other hand BTC has been and continues to rise off the lows impacted on them from the current pandemic. It was not only the first to recover but I believe it will be the first to obtain pre-pandemic levels which for BTC futures would be above $9,000. Gold I believe is the only asset to have made a full recovery to pre-pandemic levels as it regains footing above $1700 today in futures.

Bitcoin futures in the CME now have effective support at $6,800, with the next resistance levels at $7,500 and $7,970.