Bitcoin Price Blasts Through Key $7.4K Resistance

Willy Woo's Bitcoin Network Value to Transactions Signal also provides some insight into Bitcoin's current price action.

The chart also shows that during bull markets, the BTC price has remained above the 200-DMA. Given that price has a history of bouncing off the 200 daily and weekly moving average, the most recent drop to $6,500 may have been a good time to open a Bitcoin position.

The Bitcoin price is now below the 200-DMA and the chart shows price pulling closer to the realized price at $5,649.

Notice that Woo's Bitcoin NVT Signal currently shows a realized price of $5,649 and the 200-WMA is at $4,878, a point of interest on the VPVR.For the doomers calling for a visit back to 2019 lows, the 161.80% Fibonacci extension at $4,000 would be a total retrace of the parabolic move that took Bitcoin price to $13,800 on June 26.It seems unlikely that Bitcoin price will drop to these levels but a similar conclusion made last week proved many investors wrong and it's always good to consider bullish and bearish scenarios.

From a momentum traders' point of view, the price has completed the cycle of touching the upper trendline of the descending channel and also the bottom trendline so once further confirmation of a price bottom is provided, swing traders will probably consider entries within the current range.

Some traders have also noted that if Bitcoin can gain above $7,300, this would complete the inverse head and shoulders pattern and possibly send the price to the middle support of the descending channel which aligns with the $7,800 resistance - a high volume node on the VPVR.BTC USD daily chart.

At the time of publishing, bulls are fighting to keep Bitcoin price above $7,400 and the daily relative strength index has bounced sharply from oversold territory.

Currently, bulls have shown some strength and are pushing Bitcoin price closer to the $7,800 resistance.

Traders will be looking for Bitcoin to close above the former support turned resistance at $7,400 and it's possible that previous supports at $7,800, $8,200, $8,530, and $9,000 will also present themselves as resistance.

Gains above $8,500 would place Bitcoin price above the 200-DMA.The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.