3 Signs Bitcoin's Move Above $7K Might Just Hold

Bitcoin is changing hands at $7,370 and showing signs it might continue its ascent.

Exponential Moving Averages act like signals that provide crucial insights into the asking bid as well as the momentum behind each major move.

The longer the EMA the more significant the move is as it has more data points to collect from and a greater range of price history.

From May 11 to July 16, the 55 EMA for bitcoin was above the price acting as a barrier or resistance to any major moves past $6,860.

The recent bitcoin surge forced the EMA below the current price, confirming that the breakout is both significant and bullish in the mid-term.

Any major moves above the neutral Fibonacci extension at 0.5 would add confirmation to the bullish bias for the short term.

Bitcoin is unable to break that key resistance, a retracement would be more likely whereby the price would need to come down as conditions become overbought.

Prices generally retract or extend between the 38.2 percent, 50 percent and 61.8 percent Fibonacci retracement levels and are best used in conjunction with other technical indicators such as the exponential moving averages previously mentioned or trading volume.

The amount of bitcoin that changed hands in a 24-hour period can be a crucial tell into whether or not the move above $7,000 is meant to last.

Keep a keen eye on the volume as it is one of the greatest indicators in determining the strength of a particular move in relation to the amount traded.