Has Bitcoin Found its New Floor?

With Bitcoin’s recent stable streak rolling on, could the cryptocurrency have found its floor? That’s the question CCN explores in a post that lays out a compelling argument as to why the coin is unlikely to fall below $6,000 — at least not for very long. This comes as Bitcoin has remained between $6,200 and $6,800 for weeks and is currently priced at $6,500.

As CCN notes, Bitcoin has managed to defend it’s $6,000 support level even as daily trade volumes of BTC fell to a yearly low. This would imply that bears are finding it more difficult to pull the price of Bitcoin down. At the same time the cryptocurrency has seen trading volume increase by 25% over the past couple of days, which CCN says “can be considered as a positive indicator for the short-term trend of the digital asset.”

Getting even more technical, crypto trader Eric Thies has been assessing Bitcoin’s recent charts and concluded it would take big news or a major fluke to send Bitcoin to a $5,000 range. Thies told CCN, “My core reason on BTC bullishness is simple: Find me anywhere in any market where the floor held 20+ times on a weekly chart, only to break to the downside afterward. You’ll be looking for a while. The only way it happens on Bitcoin would be from an enormous black swan event.” Meanwhile aliased analyst SatoshiFlipper has been suggesting a similar support level for Bitcoin, boasting “Seeing lots of accounts starting to come to their senses. Some will catch on sooner than others, but eventually everyone will realize that $5,800 or the BTC $100 billion market cap was the correct bear market bottom. Something I’ve told everyone since July.”

While a floor may or may not be solidifying, there are also those that suggest Bitcoin could be poised for a breakout. Speaking to MarketWatch eToro senior market analyst Mati Greenspan said of an impending breaking, “It’s only a matter of time now.” However, he was quick to add, “Of course, the flat-line pattern could easily remain for another few months, and that wouldn’t be a bad thing; however, there are signs of excitement boiling underneath the cool price action exterior.” Showing his work, Greenspan also noted an increase in trade volume, concluding, “This is a classic indication that we’re nearing the end of the flat cycle.”

To some it may be odd to see so much technical analysis being utilized to predict cryptocurrency pricing — something that would have been unheard of (or just extremely difficult) mere months ago. That said, as the crypto market has matured, these data points are becoming more and more relevant for finding patterns. So while they might not be a surefire indicator of Bitcoin reaching its floor or that a breakout is on the horizon, one can always hope that both prove to be true.


Jonathan Dyer

I'm a small town guy living in Los Angeles looking to make solid financial decisions. I write for a number of finance websites, including HuffingtonPost and Business2Community. I founded DyerNews.com in 2015 to focus on personal finance and the emerging FinTech markets.

Other Articles by Jonathan Dyer

Robinhood Reveals More Details on Upcoming Retirement Account

After officially announcing plans for retirement accounts during an earnings call last month, Robinhood has now revealed more details about the upcoming feature and opened a waitlist for customers. First, Robinhood Retirement will offer both Roth and Traditional IRAs to users. With these accounts, customers will be able to invest in stocks and ETFs. Additionally, accountholders will be able to craft a custom portfolio and will be able to view...

Discover Announces 5% Bonus Categories for First Quarter of 2023

The popular Discover It card — which features 1% on all purchases as well as a slate of bonus rotating categories each quarter — has revealed what purchases will earn cardholders that 5% bonus starting January 1st. For the first quarter of 2023, Discover It cardholders can earn 5% back on grocery store, drug store, and select streaming service purchases. However, there are a few asterisks to note with this offer....

AllWork Raises $4.9 Million From FINTOP Capital 

A FinTech focused on freelancer payroll has closed a significant early-round investment. This week, AllWork announced that it had raised a $4.8 million round. The Series A was led by Nashville-based FINTOP Capital with no other participants. As a result of the transaction, FINTOP's Chris Haley and Rick Holton will join AllWork's board of directors. Previously, AllWork closed a $3.8 million seed round in 2019, bringing their to-date funding total to $8.7...