Yesterday’s Bitcoin rally led the cryptocurrency into the mid-$ 6,000 range, but BTC was unable to overcome the resistance at $ 6,500. An analyst notes that the bulls are currently “being tested” after losing an important technical level that previously supported the price action.
If the bulls want to further expand their newfound momentum and drive BTC higher, buyers must be able to protect the cryptocurrency from falling below the $ 6,350 mark.
At the time of writing, Bitcoin is trading at $ 6,440. The fact that this short-term upward trend has come to a standstill at the first important resistance level seems to indicate a fundamental weakness.
Big Cheds – a popular crypto analyst on Twitter – recently tweeted that BTC recently lost its EMA 8: “Bitcoin: 1 hour – The bulls will be tested after losing their EMA 8, a lower BB dip, and a rally,” he said, pointing to the graph below.
BTC’s currently most important support is $ 6,350
Another popular crypto analyst, Michaël van de Poppe, tweeted that Bitcoin’s current trading range is between $ 6,350 and $ 6,500.
“Bitcoin: Mostly within the range, but it’s interesting that this monthly / weekly level at $ 6,350 offers support here. Could tap the resistance around $ 6,500-6,600 again, but mostly within a span and without direction. Breaking the range -> target: $ 7,100 / $ 7,300, ” he noted.