Analysts are now noting that the resolution to the cryptocurrency’s ongoing bout of rangebound trading could be what determines whether or not its recent lows will mark a long-term bottom, or if further downside is imminent.
Bulls have been able to recapture and defend a critical technical level, however, which does seem to suggest that the markets will see further upside in the days and weeks ahead.
Bitcoin Enters Firm Trading Range Within Mid-$5,000 Region
At the time of writing, Bitcoin is trading up marginally at its current price of $5,350, which is around where it has been trading out throughout the past couple of days.
This bout of sideways trading has come about on the heels of the benchmark cryptocurrency’s recent meltdown, which led it to plummet to lows within the mid-$3,000 region.
In the time since the recovery from these lows, BTC has been facing significant resistance around $5,800 and support at $5,000, with these two levels marking the upper and lower boundaries of its current trading range.
Michaël van de Poppe, a well-respected trader, spoke about this range in a recent tweet, explaining that he believes a break above roughly $5,600 could be enough to catalyze some upwards momentum.
“Bitcoin: Range-bound movements here. The $4,800 level held for support and bears were short term trapped by a $800 increase. Support below will be $4,950-5,050. Losing that and I think we’re ready for new lows. Breaking highs at $5,500-5,600 -> $6,100 and $6,600 next,” he explained.
$BTC #BITCOIN
Range-bound movements here. The $4,800 level held for support and bears were short term trapped by a $800 increase.
Support below will be $4,950-5,050. Losing that and I think we’re ready for new lows.
Breaking highs at $5,500-5,600 -> $6,100 and $6,600 next. pic.twitter.com/mhiWZwhbsM
— Crypto Michaël (@CryptoMichNL) March 14, 2020
BTC’s Recapture of This Key Level Shows an Explosive Movement Could be Imminent
Adding to the bull case is the fact Bitcoin has been able to recapture its 200-day moving average, which is a critical level that has been ardently defended over many years.
TraderXO – another popular crypto analyst – spoke about this level in a recent tweet, explaining that it is “game set and match” after bulls recaptured this level following a brief dip below it earlier this week.
$BTC – 200 weekly MA – updated
Game set and match pic.twitter.com/2q4voly7kW
— TraderXO (@TraderX0X0) March 14, 2020
If bulls continue propping Bitcoin above this level, it is highly probable that it will soon see an explosive upwards movement that allows it to erase much of its recent losses.
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