Bitcoin needs reversal confirmation
Bitcoin has formed a reversal pattern which signals the uptrend may be coming, but some technicals highlight the momentum is probably not exhausted yet. BTCUSD finished above the $7,500 area yesterday, with the price struggles to keep the upside impetus on Wednesday as bulls continue to refrain from challenging the key $7,800 threshold.
There are no obvious industry catalysts or developments behind the latest moves. The local recovery could be partly attributed to a muted dollar dynamics as the US currency feels some pressure from Trump’s protectionist rhetoric. Overall, technical indicators continue to remain the major driving force for the coin which is trading mostly in a recovery mode since late May.
At this stage, the digital currency needs reversal confirmation in order to avoid a sell-off in the short term. The immediate support lies at $7,350. As long as the price keeps above this area, the downside risks are limited. On the upside, the key level still comes at $7,800.