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.