Bitcoin rally breaks $7k, but the price is still not safe

Bitcoin rally breaks $7k, but the price is still not safe

  • Ali Raza
  • 6th April, 10:28
  • Bitcoin saw a new surge in the early hours of Monday, April 6th.
  • The new rally allowed it to break through the resistance at $7k and remain above this level.
  • Experts warn that the coin is still not safe, however, and a drop to $5,200 remains a possibility.

Bitcoin had a major struggle over the weekend, and it finally paid off as the coin Broke its $7k resistance today. In a new surge in the early hours of the morning, BTC broke its first major resistance at $6,800. In the next few hours, the price struggled to stay above this level, but it managed to do so. After that, a new surge took place, and it brought BTC above $7k at around 08:30 am UTC+02.

Bitcoin rally comes with no apparent reason

At the time of writing, the coin is trading in the green with a price of $7,065. It saw a 4.04% surge in the last 24 hours, which allowed it to finally break through after 6 days of posturing.

However, while this is excellent news for the coin, it is still not out of danger. The question of whether BTC can sustain its new support at $7k still hangs in the air. After all, there were plenty of surges in the past, that were quickly nullified by corrections that followed shortly.

As for why did the coin’s price makes such a sharp jump, it still remains unclear. The weekend itself saw several events that may have caused the change indirectly. One example is a surge of traditional market futures that took place this Sunday. Analysts also warn that the oil situation might turn again, and the recent price increase could see another drop.

The situation could still turn around for BTC

All of this market uncertainty and volatility remain tough on the global economy, but Bitcoin, at least, seems to be profiting off of it. The coin recovered by around 70% from its crash, nearly a month ago.

But, the price still remains uncertain, as explained by analyst Michael van de Poppe. He said that Bitcoin can only change its bearish position if the support zone between $6.966 and $7,217 becomes firm. “If not, I’m still aiming to see $5,200 and perhaps lower. Rising wedge with decreasing volume going into resistance in a downtrend,” he said.

He also attempted to get the community’s insight through a recent survey. The survey shows that many among his followers expect the coin to hit $6.400, rather than $7,600. However, the majority believes the opposite, which is a good sign.

Even so, there are more optimistic experts, such as Tone Vays. Vays stated that he expects a more significant rally to take place later in April.

By Ali Raza
A journalist, with experience in web journalism and marketing. Ali holds a master's degree in finance and enjoys writing about cryptocurrencies and fintech. Ali’s work has been published on a number of cryptocurrency publications. Raza is the co-founder of 5Gist.com, too, a site dedicated to educating people on 5G technology.

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