Afterwards trading in the $6,900 to $seven,250 range for more than than 19 days, Bitcoin (BTC) price finally managed to pierce the $7,250 resistance in a high volume surge which resulted in the liquidation of nearly $lxx million worth of shorts at BitMEX.

BitMEX XBTUSD Liquidations. Source: Skew.com

The strong upside move immune the digital asset to secure a higher loftier at $7,738, a cost not seen since before March 13 when the Bitcoin toll crashed to $three,750.

With just 18 days to become earlier the Bitcoin halving consequence, traders and hodlers will both be wondering whether this is the long awaited pre-halving pump or merely another short squeeze that moved the price up a step before attempting to tackle $8,000.

Crypto marketplace daily performance. Source: Coin360

Some would conclude that the surge to $vii,738 is important every bit it lessens the likelihood of Bitcoin dropping to contempo lows below the $vi,900 support.

While true, $8,000 and $8,500 have long been expected to present considerable resistance and while crypto Twitter may be uber bullish on Bitcoin, the Crypto Fear & Greed Alphabetize shows investors remain extremely cautious about Bitcoin'south curt-term prospects.

Crypto Fear & Greed Index. Source: Culling.me

While the alphabetize shows a marginal increment in crypto market sentiment over the past month, the current reading at 19 is even so in the "Extreme Fear" category, not exactly where i would look it to exist 18 days before halving.

BTC USDT daily chart. Source: TradingView

Every bit shown on the daily chart and predicted in previous analysis, the squeeze upward to $vii,700 exploited the modest book gap on the VPVR from $7,160 to $7,743 dead on and the next challenge can exist found at the 61.8% Fibonacci retracement where the 100 and 200-24-hour interval moving averages reside.

The Bollinger Ring moving average is also smack dab on the 100-MA so its expected that flipping $eight,000 to back up will be a challenge. Even if the price pushes above $eight,000, the VPVR shows $8,500 as another level of resistance but one would hope that by the fourth dimension this level is reached $eight,000 and $7,500 will be fix to provide support.

Afterwards reaching the daily loftier at $7,738 the price apace pulled back $200 simply at the time of writing the MACD continues to rise above the signal line and histogram shows a continued increment in momentum on the 4-hour and daily timeframe.

BTC USDT 4-hour chart. Source: TradingView

The RSI too remains in bullish territory on both timeframes but on the 4-hour and 1-hour timeframe traders will detect that buy book has pretty much returned to its pre-surge level.

Alongside declining volume, the long upper wicks on the concluding three candles also signals that brusk-term momentum is fading as traders take profits and peradventure anticipate that either the price will consolidate in the current range or pullback to retest the former resistance levels.

For the time being, traders should watch volume to see if a build upwards in buy volume provides the signal that the cost volition endeavour to attack the 61.8 Fib level at $7,924.

Given that at the fourth dimension of writing, Bitcoin appears to exist losing some of the momentum which pushed it to $vii,700 earlier today, traders might also wait for the price to retest previous levels of resistance in the $7,450-$7,300 range.

The views and opinions expressed hither are solely those of the author and do not necessarily reverberate the views of Cointelegraph. Every investment and trading move involves take a chance. You should comport your own enquiry when making a conclusion.