Bitcoin market gains 7 percent per day, is it technical pullback or something bigger

After the support of $7,745 level was broken the last week, the market strengthened the decline. However, the bulls seized the initiative somewhat earlier than our analytical calculations had expected. The market did not fall to the level of the local minimum - the level of $5,950, as expected. Bulls seized the initiative at $ 6,600, and today on April 3 the market showed growth of more than 7 percent.

Since March 30, for 4 days, bitcoin has not been able to surpass the $7,350 mark due to low volumes and lack of demand for most of the major cryptocurrencies. However, over the past 12 hours, the volume of longs increased at Bitfinex, Binance and other major crypto exchanges.

Over the next few days, if bitcoin can maintain its bullish volume and overcome the $7,750 level, it is likely that the cryptocurrency number 1 can return to the region with $8,000 dollars. The return of the market to the region of $8,000 and consolidation above $7,750 can lead to preparation for a strong rally.

At present, the relative strength index (RSI) for bitcoin chart is at of 39.2, which is a neutral level. A couple of days ago RSI was 30, which meant the conditions of oversold. The next few days can be an important short-term period for bitcoins. Looks like the week will be interesting for the crypto market as well.

FortFS