Bitcoin’s (BTC) is still holding above $6,000, which has increased the chance of a bitcoin market reversal, technical studies indicate.
At the time of writing, the Bitcoin (BTC) spot price is at $6,352 on the Bitstamp exchange. Bitcoin has held its support at around the $6,000 price mark for the fourth time over the last seven months.
BTC was expected to drop below $6,000 over the last week as the bears were on the offensive to try and create a “lower low” in order to continue the overall bearish trend.
Are the bitcoin bulls back?
Whilst it is too early to call a bullish trend reversal, the fourth confirmation of a strong $6,000 support level for BTC has saved the week for the bulls. It seems more likely now, that $6,000 is realistically the “bottom” for Bitcoin.
From a bearish perspective, a failure to produce a significant move higher, and particularly a move above the bearish resistance line at around $7,000, could signify a fifth testing of the $6,000 support level. The downside move will likely gather pace if BTC fails to hold above $6,000 over the next days and weeks.
Will the bitcoin bears take control?
Also in the bears’ favour are currently three important indicators. The 21, 50 and 100-day simple moving averages (SMA’s), which will provide further support to the $7,000 resistance level. Bitcoin (BTC) is going to need high volume and momentum to be able to break this price barrier and look to test the 200-day SMA at around $8,000 again.
CryptoCoins Zone will continue to monitor the BTC Price Chart for further indicators either to the upside or the downside, but for the time being, based on the above technical analysis it is still too early to make a call for a bullish bitcoin trend reversal.
Disclaimer: This article is for information and entertainment purposes only and should never be construed as investment or trading advice. Bitcoin and other cryptocurrencies can be extremely volatile and you should always do your due diligence and research on the topic, utility, product or service and legal and regulatory requirements before deciding to invest. We do not take any responsibility for possible losses you may incur.