Bitcoin (BTC) is more likely than before to test the $8,000 mark for a number of reasons. First of all, the price is still holding up quite strongly above the $7,257 support. This has now increased the probability of a rally higher to the 38.2% fib extension level. It could face resistance there but that move is more likely to lead to further upside as we would have to see a test of the previously broken trend line support which has now turned into a trend line resistance. Barring a decline below the current support, BTC/USD is poised to rally significantly higher from here in the near future.

The majority of analysts have once again started to talk about the risks facing Bitcoin (BTC) which is a reason in itself that this rally might have some juice left in it. There is no denying that Bitcoin is eventually expected to decline much lower from current levels potentially below $3,000 but that is very unlikely to happen while everyone is expecting it. Regardless of any short-term bullishness, we can see that there is still a lot of fear in the market which has made the bears more confident. A move to the 38.2% would certainly inflict a lot of pain on the bears just before a major decline but it would be a move to the 61.8% that would take the bears by a complete surprise as it did when the price of Bitcoin (BTC) pumped by more than 43% in a matter of just two days.

The EUR/USD forex pair has once again rallied past the 38.2% fib extension level which is a major bullish development for this pair and therefore for Bitcoin and the rest of the cryptocurrency market. The focus now should remain on this pair staying above the 38.2% because the last time it climbed above it, we saw a subsequent decline below it. However, in technical analysis the more a certain level is tested the higher the probability that it will eventually be broken. We have now seen the pair rally past the 38.2% again which could mean that this time it might end up rallying much higher.

While recent developments in this pair are bullish for Bitcoin at the moment, it is important to note that a move to the downside in this pair would create similar circumstances that saw BTC/USD decline sharply just recently. This pair would thus be instrumental to the rise and fall of Bitcoin in the near future. Investors would be better off keeping an eye on this pair for future movements in the cryptocurrency market. The 4H chart for EUR/USD also shows the pair struggling to break past the 200 MA. If we have a successful break past the 200 MA, we would have a green signal to consider being long on the cryptocurrency market. On the other hand, if the pair faces a strong rejection at the 200 MA, we can expect a decline below the 38.2% down to the 61.8% which will be devastating for the cryptocurrency market.