The price of Bitcoin (BTC) has once again made it back over $7,000 following its dramatic fall earlier in March amid the Covid-19 outbreak. Bitcoin crossed $7,000 and reached a high of $7,200 before falling back and consolidating a little after rising four percent in negative correlation to movements from the stock market.
Despite this good news in the Bitcoin market, and the fact that it is working in negative correlation to how the beleaguered stock markets are going, there are still many analysts who believe that BTC will be testing lower levels on its way back to its price before the Bitcoin crash.
Some analysts believe that a $5,800 floor is still entirely possible but with the price hovering around the $7,000 mark, it appears as if the market is seeing buying opportunities in the $6,000s keeping the price from falling under that level.
Currently, BTC is only a few dollars beneath $7,000 having corrected slightly which indicates that it might be an easy jump for the coin to once again cross that mark having found a strong resistance floor just below this important figure. If Bitcoin can keep pushing beyond $7,000 it will begin to recoup some of the gains it lost in the March collapse, but it would also still need to climb back above $10,000 to get back on track from its early 2020 gains.
What is to come for BTC?
With the current financial climate in a state of turmoil, the cryptocurrency market is reacting remarkable well. It is famed for its volatility, so the gains and drops being witnessed since the major one in March have been easily within its parameters.
It is important to note that the previous few rallies that have helped BTC push towards $7,000 have made things seem a little more bullish — especially in the current situation. Bitcoin has pushed through key resistance points and once the price pushes through the $7,200-$7,400 zone there is a volume gap, which if exploited, would see the price rise to $7,700.
While this level is close to setting a monthly higher high above $7,950, the 50, 100, and 200-day moving averages are all close overhead and will likely be a challenge to overcome.