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Bitcoin Price Builds Momentum for Push to $7K
The bullish falling channel breakout has opened the doors for a stronger rally towards the $7,000 mark.
Updated Sep 13, 2021, 8:08 a.m. Published Jul 3, 2018, 11:00 a.m.
is flashing green, having convincingly scaled a key technical resistance Monday, and looks set to test the $7,000 mark in the next few days.
At press time, BTC is trading at $6,575 on Bitfinex - up 3.4 percent in the last 24 hours.
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The short-term bearish-to-bullish trend change, as indicated by BTC's break above the significant obstacle of $6,450, will likely entice investors to bargain-hunt, creating an upward pressure on BTC prices.
Hence, BTC could rise to $7,000 in the short-term and extend into further gains if its move toward the psychological hurdle is backed by a sharp rise in the trading volume.
That said, the crypto asset's 24-hour trading volume stands at $4.61 billion, according to CoinMarketCap, down 8 percent from Monday despite a bearish-to-bullish trend change.
Daily chart
BTC closed (as per UTC) at $6,618 on Monday, confirming a bullish falling channel breakout. Further, the 5-day and 10-day moving average (MA) is biased to the bulls (sloping upwards), having witnessed a bullish crossover over the weekend.
Meanwhile, the relative strength index has moved to neutral (at 50.00) from the bearish territory (below 50.00).
What's more, the Chaikin money flow (CMF) oscillator, which measures the buying and selling pressure, has turned positive for the first time since May 20 and currently stands at the highest level since May 10. The positive print indicates the money is flowing into bitcoin and adds credence to the bullish falling channel breakout.
1-hour chart
BTC witnessed a bull flag breakout on Monday, which signaled a continuation of the rally from Friday's low below $5,800 and could yield a break above $7,000.
Clearly, the odds are stacked in favor of a rally to $7,000, however, the move may not happen overnight, as the short-duration charts are reporting overbought conditions.
For instance, the hourly chart RSI is rolling over from the overbought territory (above 70.00) as seen in the chart above. Further, the 4-hour RSI is hovering well above 70.00 (in the overbought territory).
View
- The bullish falling channel breakout confirmed a short-term bearish-to-bullish trend change.
- BTC looks set to test $7,000 in the next few days.
- As for today, we could be in for a minor pullback or a bout of consolidation (sideways trading) as the cryptocurrency is overbought as per the RSI on the hourly chart and 4-hour chart.
- Only a daily close (as per UTC) below $6,275 (previous day's low) would abort the short-term bullish view.
Hard hat image via Shutterstock
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CoinDesk Data's monthly Exchange Review captures the key developments within the cryptocurrency exchange market. The report includes analyses that relate to exchange volumes, crypto derivatives trading, market segmentation by fees, fiat trading, and more.
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Trading activity softened in March as market uncertainty grew amid escalating tariff tensions between the U.S. and global trading partners. Centralized exchanges recorded their lowest combined trading volume since October, declining 6.24% to $6.79tn. This marked the third consecutive monthly decline across both market segments, with spot trading volume falling 14.1% to $1.98tn and derivatives trading slipping 2.56% to $4.81tn.
- Trading Volumes Decline for Third Consecutive Month: Combined spot and derivatives trading volume on centralized exchanges fell by 6.24% to $6.79tn in March 2025, reaching the lowest level since October. Both spot and derivatives markets recorded their third consecutive monthly decline, falling 14.1% and 2.56% to $1.98tn and $4.81tn respectively.
- Institutional Crypto Trading Volume on CME Falls 23.5%: In March, total derivatives trading volume on the CME exchange fell by 23.5% to $175bn, the lowest monthly volume since October 2024. CME's market share among derivatives exchanges dropped from 4.63% to 3.64%, suggesting declining institutional interest amid current macroeconomic conditions.
- Bybit Spot Market Share Slides in March: Spot trading volume on Bybit fell by 52.1% to $81.1bn in March, coinciding with decreased trading activity following the hack of the exchange's cold wallets in February. Bybit's spot market share dropped from 7.35% to 4.10%, its lowest since July 2023.
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