Bitcoin Could Breach This Important Technical Level

As of this writing mid-day Wednesday, bitcoin was residing above $6,500, comfortably above the $6,000 level many technical analysts view as critical on the downside. However, some crypto market observers believe it is a matter of when, not if, that bitcoin violates the $6,000 area.

Bitcoin’s all-time high of around $20,000 was seen in December 2017 and the digital currency has not even been close to flirting with those levels this year. Some market observers believe a return to $10,000 anytime soon will be challenging. Still, there are some important technical levels for bitcoin traders to acknowledge over the near- to medium-term.

“As digital currency owners tout the resilience of bitcoin’s support at $6,000, one analyst believes the tenuous psychological level could soon disintegrate, noting the evidence isn’t in the support, but the weakness of every subsequent rally. “While we held $6k support firmly for nearly six months, every bounce has been getting lower,” wrote Jani Ziedins of CrackedMarket in a Wednesday post. Market technicians tend to view assets as remaining in bearish, or neutral, trend if prices fail to post higher highs,” reports MarketWatch.

Near-Term Bitcoin Price Prediction

Traders expect bitcoin, the largest digital currency by market value, to remain range-bound over the near-term. Among the myriad issues facing bitcoin and other cryptocurrencies is adoption. As in when cryptos will become more widely accepted and used for mainstream activities, such as basic payments and money transfers, on a larger scale.

Some market observers believe bitcoin can rally into year-end, but that $8,500 might be the highest price achieved before the start of 2019.

“First, we bounced to $17k. Then it was $12k. $10k came next. After that $8.5k. Earlier this month it was $7.5k and this weekend we stalled $6.8k. At this point, it is only a matter of time before we tumble under $6k support,” said Ziedins, according to MarketWatch.

For more information on the cryptocurrency market, visit the Bitcoin category.