Bitcoin Eyes $7,800 After Biggest Daily Price Gain in a Month

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Bitcoin jumped above $7,400 on Wednesday, confirming a bullish breakout on the short duration technical charts.

Bitcoin eked out the biggest single-day gain in four weeks on Wednesday, confirming a short-term price breakout and opening doors for a test of resistance at $7,800.

The number one cryptocurrency printed a UTC close at $7,528 on Bitstamp, representing a 5.15 percent gain on the daily opening price of $7,168.

That's the biggest single-day price rise since Oct. 26.

Wednesday's gain looks more impressive if we take into account the rejection of lower prices seen during the European trading hours.

Prices had dropped to $6,850, but were quickly reversed and the cryptocurrency ended the day on an optimistic note, validating the seller exhaustion signaled by key technical indicators.

At press time, BTC is changing hands at $7,480, having hit a high of $7,670 during the U.S. trading hours on Wednesday.

The latter represents a transition from the lower-highs, lower-lows set up to one of higher lows and higher highs.

It's considered a potent bullish reversal pattern if it appears following a significant price drop, which is the case here.

On the way higher, the pair may face resistance at $7,800 and the descending 100-candle average, currently at $7,936.

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