Bitcoin lacks momentum
Bitcoin fails to stage a meaningful recovery this week, with the price struggles to overcome the key immediate resistance at $7,500. BTCUSD needs a clear break above this threshold in order to show a more sustainable upside bias, but obviously lacks momentum so far. The coin is attempting to erode the barrier on Thursday, up 3% on the day.
Some pressure came from Nobel Prize-winning economist Robert Shiller who has criticized the cryptocurrency once again. This time, he claimed bitcoin could become extinct within the next 100 years. Despite the industry has already got used to similar statements, this added to the coin’s weakness and limited its local upside potential.
From the technical point of view, we can now see some signs of exhaustion, including the narrowing gap between the 100- and 200-SMA in the hourly charts, which may be the prelude to a more pronounced rebound, should the $7,500 area gives up in the short term. However, despite the downside risks have abated, the $7,000 support remains in focus.