BTC Price Rebounds From $7,700: Crypto Traders Hope for Relief Rally

Subsequent to the recovery of the Bitcoin price movement from $7,700 to around $8,200 in the past 24 hours, technical analysts anticipate Bitcoin and other major crypto assets to recover in the short term.

Speaking to Cointelegraph, crypto trader Nick Cote said that there are plenty of times when the price history was at $7,600, which is likely to hold as a level of strong support for traders in the upcoming days.

Technical analysts remain divided on the Bitcoin price trend and the rest of the crypto market, but most generally agree that there is strong demand to buy BTC in the mid-$6,000 to $7,000 region.

As said by Josh Rager, a crypto technical analyst, the breakdown of key support levels at mid-$7,000 is likely to result in BTC spiraling down to the $6,100 to $6,500 range, which has seen lots of price actions in the months prior.

In mid-2020, BTC is expected to go through a mechanism called a block reward halving that would cut the rate in which new BTC is created by miners by half, reducing the circulating supply of BTC across exchanges and over-the-counter desks.

Bitcoin's price dropped violently below the $9,000 after a support level of $9,650 was weakened, as it was tested more than six times over the past few months, creating a weaker base for BTC to turn around and reverse the downtrend.

The most likely scenario for BTC - based on key technical indicators like the 200-day moving average convergence divergence and the Relative Strength Index on larger time frames - is that BTC will see a relief rally as a result of extreme conditions and will eventually test lower-level supports in the coming weeks.

In consideration of the weakened momentum of BTC, technical analysts generally anticipate a scenario in which BTC sees a relief rally to the $9,000 resistance level, which used to act as a strong support, and falling to test lower-level supports by October as the most likely.

Whether an increase in the concentration of the global Bitcoin volume to futures markets would be beneficial to the long-term price trend of BTC remains to be seen.

BTC has shown dependence on the CME Bitcoin futures market when it comes to short-term price movements, with expirations of futures contracts often coinciding with a relief rally for BTC..