BTCUSD registered a fresh three-day low on Tuesday and failed to close above the key $8,000 mark. However, today, the cryptocurrency jumped 3% in minutes and is trying to keep above the psychological level at the moment, +2.25% on the day.
The cryptocurency market remains volatile, and in this case, it may well be connected with the US tax deadline. As the tax day passes, bitcoin could stabilize somehow, and its further prospects may get more bullish. As such, there is a growing chance of extending its recovery from lows below $6,500 to $8,500 and above.
From the technical point of view, the key on the downside is the $7,600 area. It I important for the pair to keep above this local support in order to escape a more aggressive sell-off in the future. The goal for the bulls now is the intermediate resistance at $8,200. The digital currency needs a daily close above this figure to stage a more sustained ascent.
There are short-term bearish risks for bitcoin, while its longer-term prospects look more constructive, despite the continued regulatory crackdown around the globe.
By Helen Rush
Senior Analyst at Capital Markets