Bitcoin price hovered around the $7,550-$7,650 territory on Friday morning. Volatility has declined since the beginning of the week, as BTC/USD has been largely trading in this range for the past seven days. BTC/USD also struggled to move past the $7,700 price point earlier today.
BTC/USD Holds Support At $7,550
For most of Friday morning, Bitcoin price stayed steady in the $7,550-$7,650 range, with the lower limit being its major support level. Bitcoin has been trading in an increasingly narrow range for the past week, and volatility is on the decline. In fact, Bitcoin price volatility hasn’t been this low since last October.
For the past two weeks, the cryptocurrency has been restricted to the $7,000-$8,000 range, hinting that the market is being very cautious at the moment. However, a long period of quiet action might be a precursor to more violent breakouts in the future, especially in the erratic crypto market.
BTC/USD is currently on a bullish run to test a resistance of $7,700 again. On the upside, a break above that could send Bitcoin to another $100 increment toward the pivotal $7,800 level. On the downside, a reversal may take BTC/USD down to a retracement level of $7,500.
Source: Tradingview
The technicals chart indicates that buyers are currently winning the battle. The MACD indicator is showing a bullish signal, while the RSI puts Bitcoin in overbought territory. It’s more likely that BTC/USD could stay above $7,600 for the short term. A close above that is important for the upside action.
Looking at the Technical Indicators:
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Hourly MACD — Bullish signal
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Hourly RSI — Bitcoin is in overbought territory
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Major Resistance Level — $7,700
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Major Support Level — $7,550
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