It may be no more than a coincidence, but bitcoin prices tend to shift direction in dramatic fashion on the sixth day of the month. That is today and if that trend holds true to form, it could be significant for the struggling digital currency.
“A major reprieve just may be in the offing for the battered bitcoin bulls in the next 36 hours – if, that is, historical patterns repeat themselves,” reports CoinDesk. “Intriguingly, the cryptocurrency tends to take a significant change of direction on the sixth day of every month.”
The all-time high for bitcoin is around $20,000, which was seen in December 2017. In recent weeks, there have been plenty of calls for the cryptocurrency to return to those record highs and beyond. Still, bitcoin has some technical issues to deal with. A move below $7,000 could send bitcoin to $5,000. Bitcoin prices flirted with $7,600 on Tuesday.
Bitcoin does not lack for supporters as there have been plenty of bullish calls on the cryptocurrency in recent weeks. Some crypto market observers have opined bitcoin could reach new highs this year, but those are just projections. In financial markets, price matters and bitcoin’s price has rapidly eroded since the start of May.
What’s In Store for Bitcoin This Month
“Going by the historical pattern, the cryptocurrency seems likely to turn higher in the next 36 hours or so. In this case, bitcoin could revisit triangle (narrowing price range) resistance, currently located at $9,225,” according to CoinDesk. “On the other hand, long-term technical studies are biased to the bears, which was not the case on previous occasions.”
On a technical basis, bitcoin has its work cut out for it. The largest digital currency has been laboring below its 50-day moving average, indicating it will take a lot more than a solid June 6th performance to get cryptocurrency back to bullish territory.
Some chart watchers believe bitcoin needs to reclaim the $7,800 area before the bulls regain control.
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