- Summary:
- Bitcoin price is enroute to record its biggest weekly gain since mid-January, but needs to return to VWMA level to gain traction.
Bitcoin price returned to the upside on Friday, continuing with its recent trend signaling a potential reversal. The crypto coin was up by 2.8% at the time of writing and enroute to record its biggest weekly gain since mid-January. BTC has gained 3.3% in the last five days, bouncing back strongly from four-month lows of $76,600 recorded three days ago.
Bitcoin Signals Potential Reversal And Signs to Look Out For
The sharp decline by the crypto market is not a reflection of reduced appeal among investors, but a result of a risk-averse climate created by a growing global tariff war. Bitcoin price is down by 10% year-to-date, resulting in a downward-leaning momentum.
However, the regulatory climate around digital assets has improved substantially this year, headlined by US President Donald Trump’s support. In addition, 12 US states have lined up legislation to create state-level Bitcoin strategic reserves akin to the Federal Cryptocurrency Reserve recently created via Trump’s Executive Order.
This sets up BTC price for a strong reversal if the feuding US and its trade partners resolve their differences. Any hint of commencement of negotiations will likely drive whales to the market with likely high volume purchases to follow. In the meantime, a return by Bitcoin price to levels above its Volume Weighted Moving Average (VWMA) could be the first sign of a bullish takeover. The VWMA is at $86,100 as of this writing.
Bitcoin Price Prediction
Bitcoin price momentum has its pivot at $82,300 as seen on the chart below. The upside will likely prevail if action stays above that level. With the buyers in control, the coin is likely to head higher and encounter the first resistance at $84,270. However, a stronger momentum will break above that level and could potentially test the second resistance at $85,880.
Alternatively, the momentum will shift to the downside if the price breaks below $82,300. That will likely see the first support come at $80,800. Breaking below that level will invalidate the upside narrative. Moreover, the resulting momentum could extend the downside to test the second support at $79,240.
