Bitcoin (BTC) has been caught within a firm bull market throughout 2020, which has allowed the cryptocurrency to garner some notable momentum that led it to climb from year-to-date lows of $6,800 to highs of $9,200. Although BTC has struggled to break above the lower-$9,000 region, it is important to note that the cryptocurrency has been able to hold above its key support levels, but bulls need to continue ardently defending these near-term support levels if the crypto is to see any further upwards momentum. One prominent analyst is now noting that one of these key levels exists at $8,472, and that a daily close beneath this level could mean that the bull market has been invalidated. At the time of writing, Bitcoin is trading down just under 1% at its current price of $8,640, which marks a slight decline from daily highs of $8,750 that were set yesterday when bulls attempted to catalyze some upwards momentum. In the near-term, it does appear that BTC’s tight trading range has a lower boundary at $8,500, as this is where the cryptocurrency bounced at on multiple occasions during its latest bout of sideways trading. Nik Patel, a popular cryptocurrency analyst, shared his thoughts on Bitcoin’s recent price action in a blog post, telling readers that the fate of Bitcoin’s recent bull market may hinge on it holding above $8,472, as a close below this could mean that a bear market will ensue. “Whether price falls off for the remainder of the week…is uncertain for now, as we have not yet closed below the resistance turned support at $8472 – this level giving way would be my primary indicator that the rally is likely over, at least short-term,” he explained. Patel further goes on to note that the key level Bitcoin needs to break above in order for it to further extend its recent momentum exists at roughly $9,090, which could catalyze a movement to its heavy resistance zone at just below $9,500. “If, however, we see price begin to retest that $9090 level this week, I expect we may see some further continuation into the heavy resistance zone between it and $9470,” he notes. Although Patel believes that BTC will face a rejection at this resistance zone, it is imperative that bulls continue absorbing the heavy near-term selling pressure, or else the long-term significance of this rally could be nullified.Bitcoin Struggles to Gain Momentum After This Weekend’s Drop
What Level Does BTC Need to Break Above to Spark a Further Uptrend?
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