Bitcoin is looking likely to retest the $7,200 resistance level for the second time this week, as buyer confidence grows in the market today. This is extremely important as it is currently reaching the top of its downward trend line with strong and critical support at the $6000 mark.
Ever since the release of CME Futures at the beginning of last year, a recent article suggested the use of cartels in intentionally pushing price down in order to purchase at a lower price. It is also important to note that near the $5000 mark we may see extra support as that is the current cost of production for a single bitcoin.
For 4 months the BTC market has struggled to keep its head above water after flurries of bad media press, restrictive regulation and FUD continue to suppress any sustainable positive trend movement. "At the bottom of this downtrend we saw BTC touch the critical $6,000 support, regarded by many as the ‘psychological support’, before quickly retracing to the earlier 0.5 fib level entry point, at $11,500. This base support level is BTC’s Alamo point, where any movement below could prove fatal to Bitcoin’s price". (Investing.com).
Now we are looking for any promising signs of a potential rebound in the weeks ahead. We could also be seeing a completed Elliot Wave formation and therefore the start of a new uptrend in the market. If bitcoin does manage to break above the $7,200 level then we could see a break up to the next path of resistance at $9,500 followed by the second resistance at $11,500. MACD has also turned into a positive convergence which is a sign of increasing momentum for traders.
Overall Prediction:
With Bitcoin just below $7,100 mark which is just short of the $7,200 resistance line, we have seen thin volume which has been a trend for the last few weeks. However, this has slightly improved over the last 24 hours which could allow more traders to open up long position. We may have already hit the bottom and be at the start of an uptrend, but we need a bit more convincing from the bulls!
Credit Investing.com and Coindesk
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