Bitcoin at 6600: What Are Analysts Thinking as BTC Trades at Lowest Price Since May?

Bitcoin at $6,600: What Are Analysts Thinking as BTC Trades at Lowest Price Since May?

Once again, bears have managed to wrest control of the crypto market from bulls, plunging Bitcoin (BTC) to $6,600 earlier today. This comes after Bitcoin bulls were afforded a glimmer of hope as the cryptocurrency jumped 8% from the Friday low of $7,400.

With the leading digital asset now trading at its lowest price point since May of this year — and is trading down some 6% in the past 24 hours — what are analysts thinking? Do they even think that Bitcoin’s long-term, secular uptrend remains intact after this brutal downturn?

Bitcoin to Find Support… Soon

While the consensus on the exact support level isn’t clear, many analysts agree that the leading cryptocurrency is approaching a very key price zone that may “make or break” Bitcoin’s medium-term prospects of upside.

As analyst Byzantine General recently pointed out in a recent tweet, this zone/level is the 21-month simple moving average, which sits in the mid-$6,000s at current. This has been the point at which BTC has bounced in two previous bull market retracements. Of course, the sample size of bull markets is small, though the chart below shows that the 21-month moving average has been a significant level for BTC to hold above.

The 21-month moving average somewhat lines up with the most important price point in 2018: $6,000, which is where BTC traded at throughout much of the price action last year, and thus acts as a so-called Point of Control in technical analysis terms.

Some analysts believe that if the cryptocurrency can hold above $6,000 in the coming weeks and months, a bullish technical trend should begin to form, catalyzing the next leg of the bull run higher, which should be aided by fundamental events like the introduction of institutional players and the block reward reduction, slated to act as a negative supply shock for this market.

Watch $5,000

While $6,000 is likely to hold, where’s the next level to watch if things go south… real south? $5,000, according to a number of analyses anyway.

An analyst going by Mac remarked that $5,100 will be the ultimate bottom of this recent downtrend because there exists a key confluence of support levels at that level: the double-month volume-weighted average price, a “price inefficiency fill” level, and the 200-week moving average.

Original article posted on the EthereumWorldNews.com site, by Nick Chong.

Article re-posted on Markethive by Jeffrey Sloe

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