Bitcoin: a key technical threshold at $ 7,200 for the price of BTC

Credit: Bitcoin – Pixabay

The Classes of Bitcoin bounced off the support at $ 6500, carried by the liquidity and the gradual reopening of the China, and test a $ 7200 key threshold.

Key technical factors of the article:

• The upward recovery of Bitcoin relying more and more on the reopening of China and the prospect of deconfinement in Western countries, confidence is returning to the markets.
• From a technical point of view, the bitcoin price has rebounded into the bottom of its bullish Chartist channel and is testing a key threshold at $ 7200.

The bitcoin price continues to develop a bullish recovery at low speed from the low point at $ 3850, within a charted channel with a slight slope and in an increasing volume, the general measure of which remains however before the crisis.

In one previous technical point, we have seen that professional traders are making their return to the BTC, via the futures markets. All other things being equal, we are still very far from a FOMO situation but the world's major central banks are now injecting historic amounts and this massive liquidity is fueling the rebound in risky assets. The BTC did not play a safe haven role when stocks fell, it seems, in a way, correlated with the recovery in stock market indices.

Liquidity injections by major central banks

The financial markets are gradually regaining confidence as the end of the health tunnel becomes clearer. China has already been in an economic reopening phase for a month and in western countries, deconfinement protocols are being put in place, for a starting point for gradual reopening from the middle of May.

Let's be realistic, the extent of the pandemic's damage to the global economy has yet to be fully measured and central bank injections are not everything. In any case, the deconfinement is favorable to the mining activity, mid-May coincides with the fourth halving BTC.

On a purely Chartist level, I still note the bullish action of a gently sloping channel, as well as the support role of the support at $ 6,500. The market is now testing a resistance at $ 7200, a level which is identified over several time horizons and which represents a starting line for a possible next bullish impulse. In the meantime, it's neutral between $ 6,500 and $ 7,200.

Bitcoin price – graph showing the daily Japanese candles with the Ichimoku system

Follow Vincent Ganne on Trading View for further analysis on the financial markets. The technical thresholds and the trend indicated above are based on the technical approach "price, momentum, sentiment, ichimoku". The data come from Bitstamp and the graphics of TradingView. You can consult the history of our technical points on cryptocurrencies in click here.

This content is provided for informational purposes only and does not constitute an investment recommendation. We remind you that theinvestment in crypto assets, including Bitcoin, is extremely risky. Cryptocurrency prices are prone to large and unpredictable price swings.