Over the past few days, Bitcoin (BTC) has started to settle in a price range, the low-$8,000s. For now, the cryptocurrency seems directionless, stuck between resistances and supports above and below its current price.
However, it is important to note that Bitcoin is moving very near to a key historical level — one that may reveal if BTC is in a macro bull or bear trend.
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Bitcoin At Key Price Level
A Twitter user going by “Spookey Dyme” recently drew attention to a key trend: throughout Bitcoin’s last bull market, the cryptocurrency consistently closed above the one-week SuperTrend indicator’s baseline without fail.
What’s worrying is that after last week’s drop, Bitcoin has begun to trend near the baseline, which is currently at $7,800. A weekly close under this level, according to historical precedence, would mark an end to the bull market.
Traditionally in a bull market Bitcoin weekly stays above ATR. pic.twitter.com/LspRofngHe
— Dyme (@CryptoParadyme) October 4, 2019
The SuperTrend isn’t the only sign giving credence to the theory that the high-$7,000s will be of utmost importance for Bitcoin bulls.
Around $7,700 sits a confluence of integral technical support levels. These include but aren’t limited to the 200-day moving average; the 365-day exponential moving average, a level that Bitcoin bounced straight off of during mid-2017; the 50-week exponential moving average, among other levels that many say are indicative of Bitcoin’s medium-term trends.
– Strong weekly support at 50EMA and 100MA
– Closing below 7.7K, can cause a nasty dump to around 6.5K
– As long as I see a good reaction at the current support channel, I am positive we are going up from here pic.twitter.com/LJqycVtE18
— CryptoBuzz👨💻🧘♂️👨💻 (@Crypto_Buzz_247) September 26, 2019
Analyst Crypto Buzz has stated that a loss of this level is likely to cause “nasty dump to around $6,500”, a level which many believe will act as the bottom of this bull market consolidation. $6,500 is, of course, where BTC famously traded around for months on end during the middle of 2018.
Bull Case Grows
Although investors are mostly divided over where Bitcoin will head next, the bull case recently gained some steam.
Published on Friday, Bloomberg reported that the GTI Global Strength Indicator, “a measure of upward and downward movements of successive closing prices,” recently printed a buy for the first time since the cryptocurrency bottomed at $3,150 in the middle of December. It was added that Bitcoin’s ability to consolidate at $8,000 is also a sign that BTC’s price has been building upward momentum.
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