Bitcoin price bottomed out a year ago but maybe will return if BTC fails break out of the low-$7000s

In December 2018, the cryptocurrency community seemed to be at its darkest when the Bitcoin price fell below $ 3,200. This is the level that is currently considered the historical bottom of BTC.

Bitcoin price bottomed 2

Source: MarketWatch

Bitcoin critics had a boom day on Twitter but not all bulls were purged. Some see this as a good opportunity to buy before the next bull run.

Bitcoin price has gone through a series of painful corrections since reaching an annual peak, slipping back to $ 7,100. However, the No.1 still increases with a whopping 120% annually, something unheard of in traditional markets.

Bitcoin drops further as price fails to break out of low-$7,000s

Over the past week, Bitcoin has established a tight range in the low of $ 7,000 as the volume gradually declined. This consolidation has impacted the Bollinger Bands, a technical analysis tool to find more information on trading ranges and volatility, pushing Bitcoin to reach squeeze levels, showing that volatility is occurring.

While this consolidation is said to be neutral, not up or down, some analysts are raising doubts about the impending volatility that will break below $ 7,000. This suspicion can be confirmed by the fact that BTC has not yet broken out of the critical resistance area of ​​$ 7800 – $ 8000.

Trader SalsaTekila commented that Bitcoin’s one-day chart looks quite bleak as BTC has turned the $ 7,300 support level into resistance, which shows that the bears are still in control.

FizeekMoney analyst pointed out that the bulls do not have any place to topple the bears. An indicator of the relationship between price and volume On-balance Volume has formed a bearish trend on the six-hour BTC chart, implying a price action is forming. Meanwhile, the Accumulation/ Distribution indicator implies that distribution is taking place.

Traders are expecting the price of Bitcoin to return to the zone of $ 6,200 – $ 6,400, which can provide strong support for the cryptocurrency market. If that support is broken, the price could slip to $ 5,000 or lower.

Disclaimer: This is not trading advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.

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