“As for the near term, a bottom would occur more quickly and more constructively if the recent low of $6,000 per coin holds. However, the 100-week moving average is down near $4,550, so traders will be watching that level,” according to CNBC.
Assuming that forecast is correct and bitcoin needs to bottom around $4,550, that represents significant downside from current levels. From there it could take substantial upside to generate a new bull market and return to the technically important $10,000 level.
“Meanwhile, the six-month downtrend remains intact until a close above $11,300, and the near-term downtrend remains intact until a close above $8,500,” reports CNBC.
For more information on the cryptocurrency market, visit our Bitcoin category.