Just when it seemed that a new period of correction and downtrending was assured, Bitcoin (BTC) has has repeated last week’s performance almost to the letter, as buyers today stepped in to pump the leading crypto from $7,700 to almost $8,100 in little more than an hour.
The bearish atmosphere that had been forming was thus thrown on the backfoot. BTC bounced very hard at the $7,500 resistance level just when it looked about to break it, and fall into a period of retracement in the $7,000 area or below.
Time will tell if this bounce will stick. The parameters for remaining near $8,000, discussed here, may still be in play. $8,000-8,100 is the area to break, that Bitcoin must get and stay above in order to avoid a larger retrace down. Also resting conveniently in this region are the 9 and 21 day EMA averages, which Bitcoin has continuously struggled to get above.
However, it seems possible at this point to propose a new theory about price action: that Bitcoin will simply go sideways within $7,500-8k, seeing as how the bulls seem completely unwilling to let BTC fall below this level. Looking at a shorter timeframe chart, below, we can see that the leading cryptoasset still has plenty of playtime within the broader downtrend set around $9,000 to simply keep chopping up the market.
If last week has proved anything, it is that the bulls have not lost control of the market. Massive buying is keeping this market aloft; not in a new uptrend but neither in a downtrend. We should keep an eye on altcoins - as they tend to thrive with Bitcoin going sideways.
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