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Bitcoin price analysis: bulls never give up as BTC/USD is back above $6,000

  • Bitcoin is not dead yet, not as long as it stays above $6,000.
  • BTC/USD is capped by the critical resistance level at $6,400.

Bitcoin hit $5,777, the lowest level of 2018 before buyers came in and saved the day. The digital coin No. one got back above $6,000 late on Sunday, to trade at $6,137 at the time of writing. With no apparent reason, the upside looks like a technical correction from new lows, and it is not clear, whether it will have legs. 

Meanwhile, long-term investors are back with their traditional call to put things into perspective as the coin is still 140% higher than this time last year. It means that those who bought the in June 2017 are in profit. However, it is a weak consolation to short-term speculators who poured into the market by a dozen.

Famous Bitcoin bull Brian Kelly from BKCM LLC says that the drop is painful, but it is not unusual for cryptocurrency markets

"And bear markets, we don't know where they end," Kelly said. "It doesn't mean that bitcoin can't go lower. But this is by no means the funeral for bitcoin," he explained at CNBC.

Bitcoin technical picture

BTC/USD  stays within the downside channel with the upper line created by Andrew's pitchfork, currently seated at $6,400. If the bulls manage to clear this area the upside may be extended towards $67,000, however this development seems unlikely at this stage. On the downside, another attempt below $6,000 may lead to a retest of recent lows at $5,777.

BTC/USD, daily chart

 

Author

Tanya Abrosimova

Tanya Abrosimova

Independent Analyst

 

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