Bitcoin Price Rallies Higher but Must Hit $8K to Start a Bull Market

Bitcoin (BTC) closed the week up 15.4% at $6,775 and has started the day with a further 6% move to the upside, breaching the $7,000 handle and making highs at $7,300.

Looking at performance relative to its peers, Ether (ETH) and EOS have posted an impressive 16% gain over the last 24 hours. As a result, Bitcoin dominance is down 1.5% at 65%.

Crypto market daily price chart. Source: Coin360

The total cryptocurrency market capitalization breached the $200 billion level, breaking from the diagonal resistance dating back to February when the total market value briefly touched $300 billion.

Total Cryptocurrency Market Capitalization chart. Source: TradingView

The cryptocurrency market as a whole is up 86% off its lows of a little over $100 billion but still down 30% from its 2020 highs. This highlights the volatility in the market over the last few weeks.

Bitcoin weekly timeframe

BTC USD weekly chart. Source: TradingView

Bitcoin closed the week with a large bullish candle after continuing to find buying interest at the 200 week moving average (WMA). The 100 WMA halted progress at $7,000 but the Stochastic relative strength index oscillator has crossed bullish and shows momentum is still favoring the bulls.

Trading volume continues to decline, but it remains higher than average. For context, we can see that buying interest last week was similar to that seen in October 2019 when Bitcoin catapulted from $7,200 to $10,400. This would suggest that there is still strong buying interest in the market.

Above the 100-WMA is a cluster of resistance, along with the 20-WMA which typically defines whether Bitcoin is in a bull or a bear market. In addition, both the 100 and 200-week moving averages are in this area and both have played an important role as resistance in the past.

Amongst the moving averages is also the yearly pivot point at $8,100, so if the bulls can continue their progress through the 100-week moving average, there is little resistance to the upper…

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