After showing signs of weakness at the beginning of this week, Bitcoin made a successful comeback on Wednesday, rising 7% to $7750 in a few hours, and bulls recovered an important $7000 with strength.
Investors all hope that Bitcoin could return to $9000. Bitcoin has recovered 64% from its lowest point $3700 in March. The combination of fundamentals and technical factors shows that Bitcoin is preparing to take uptrend step.
Fundamentals:
On April 21, the U.S. Senate approved a $484 billion supplementary stimulus plan, after a $2 trillion economic stimulus plan was approved in March. These bills show how easy it is to print money out of thin air. Compared with the long term view of special currency, it can improve the value proposition of scarce cryptocurrencies.
Technical analysis:
On 4 hour chart, Bitcoin has successfully broken through the previous two highs, $7200 & $7500. At present, $7200 and $7500 have become strong support.
Moving Average line became sequence array from short-term cycle to long-term cycle, it indicates that the price has entered a rising trend.