Bitcoin Price Eyes $7.4K After Defense of Key Support

Bitcoin looks primed for a minor rally, having defended a key moving average support in the last 72 hours.

The 50-day moving average (MA), one of the most widely tracked technical indicators, was put to test in the previous two trading days. However, on both occasions, prices failed to penetrate the MA support by the daily close (as per UTC), signaling bearish exhaustion.

Today, BTC is following a similar pattern. The leading cryptocurrency picked up a bid around the 50-day MA support of $6,938 earlier today and rose back above $7,000, raising prospects of a corrective rally.

At press time, BTC is changing hands at $7,050 on Bitfinex – up 0.70 percent on a 24-hour basis.

The solid defense of the 50-day MA support and the early signs of bullish reversal, as seen in the short-duration chart below, indicate scope for a stronger rally toward $7,400.

4-hour chart

The above chart shows, the current 4-hour candle is hovering above the top end (resistance) of the falling channel…