Bitcoin (BTC) tested support at $7,500 on April 24 after a surprise surge saw the cryptocurrency beat out resistance and reliance on stocks.
Cryptocurrency market daily overview. Source: Coin360
BTC price puts in a $7.5K foundation
Data from Coin360 and CryptoNewspeople Markets showed BTC/USD attempting to form new support at $7,500 on Thursday.
Since hitting a high of $7,760 the day before, only three brief dips to the $7,400 zone have appeared, indicating renewed market strength.
The high was Bitcoin’s best performance since mid-March, when markets infamously crashed up to 60%, in line with mayhem in traditional assets.
Bitcoin 1-day price chart. Source: Coin360
Since then, Bitcoin has slowly attempted to exit correlation with stocks and bonds, with Wednesday’s boost sharply contrasting with misery on oil markets and foreboding among traders.
The S&P 500, for example, saw a sharp contraction in mid-day trading due to news that a pharmaceutical company allegedly harboring an effective coronavirus cure did not, in fact, have one.
Bitcoin versus the S&P 500 3-month chart. Source: Skew
CryptoNewspeople analyst: $9K back in play
Against a backdrop of continued uncertainty, Bitcoin, therefore, looked all the more impressive — year-to-date, the cryptocurrency was up $300 or 4.2% at press time. Versus its March lows, BTC/USD was up over 100%.
“If we make some nicer slow retracements in the coming few days, I’m assuming we might even be going towards $8,400 or $9,000, as there is a CME gap over there which is a narrative for traders,” CryptoNewspeople Markets analyst Michaël van de Poppe forecast in his latest trading video on Wednesday.
“But if we close the daily below $7,400, then I’m assuming this to be one big trap, and I’m probably even considering any shorts again.”
In the event, Bitcoin did not see a daily close at lower levels.
Meanwhile, another theory surfacing among traders on social media focused on Bitcoin’s resemblance to the Nasdaq during and after the Dotcom Bubble.
“So far this is textbook V-bottom,” a popular Twitter-based analyst summarized about Bitcoin’s March bottom uploading comparative charts.