Bitcoin Bulls Defend Key Trendline; Are Further Gains Imminent?
At the time of writing, Bitcoin is trading down nearly 1% at its of $7,200, which marks a notable decline from its daily highs of nearly $7,600 that were set at the peak of the relief rally.
It is imperative to note that the move – which led some analysts to believe that $6,400 was a long-term bottom for the cryptocurrency – appears to be somewhat weak, as bulls are now attempting to defend BTC’s position within the $7,000 region from aggressive selling pressure.If Bitcoin does see further selling pressure in the near-term, the cryptocurrency could be at risk of seeing significantly further losses, as it is trading just a hair above a critical multi-year trendline.
Mr. Anderson, a popular crypto analyst on Twitter, spoke about this trendline in a recent tweet, explaining that the recent drop to $6,400 marked a breach of this level, which has since been reclaimed.“$BTC 4-year Log Trendline update: As mentioned, BTC was in the midst of a 15th test of a very clean 4-yr trendline. Clean b/c drawn w/ coordinates from base through the 2019 bottom it has ZERO weekly closes outside the trendline. Thus far, we have reclaimed intra-week yet again,” he said while pointing to the charts seen in the below tweet.
4-year Log Trendline update: As mentioned, BTC was in the midst of a 15th test of a very clean 4-yr trendline Clean b/c drawn w/ coordinates from base through the 2019 bottom it has ZERO weekly closes outside the trendline Thus far, we have reclaimed intra-week yet again — Mr. Anderson (@TrueCrypto28)
How BTC continues reacting to this level in the coming days and weeks will provide valuable insight into the long-term outlook of Bitcoin and the aggregated crypto markets.
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