Bitcoin’s decline to lows of $5,800 overnight was met with significant buying pressure that subsequently allowed the cryptocurrency to climb higher, with BTC bulls now attempting to reclaim the crypto’s previous position within the upper-$6,000 region.
This early morning rebound came about after a short bout of intense selling pressure, and buyer’s ability to absorb this and defend against further downside is certainly a bullish sign.
Despite this, one trader is now noting that he believes Bitcoin is firmly in bear’s control as long as it trades below one key level that has yet to be surmounted.
Bitcoin Garners Tempered Momentum as Analysts Watch Key Technical Formations
At the time of writing, Bitcoin is trading up just under 4% at its current price of $6,350, which marks a notable climb from daily lows of $5,800 that were set at the bottom of the overnight selloff.
Bulls did post an ardent defense of this level, however, which is what catalyzed the momentum that has led the crypto up to its current price levels.
In the near-term, whether or not Bitcoin is able to climb higher or not may depend on if it is able to close its monthly candle above $6,425, a level that one analyst thinks is of the utmost importance.
“BTC monthly close above 6425 would be solid bullish SFP to make April-May brighter. For now, it needs to unfold this symmetrical triangle, contracting consolidation. Safest non-scalp swing trades on breakout (or breakdown) retest.”
BTC Faces Heightened Bearishness Below Mid-$6,000 Region
Even if BTC is able to close its monthly candle above $6,425, it still faces some intense resistance between roughly $6,450 and $6,550.
George, a popular cryptocurrency trader on Twitter, spoke about the resistance that exists around this level in a recent tweet, explaining to his nearly 20k followers that he believes Bitcoin is in firm bear territory until it is able to firmly break above this region.
“BTC: As long as we stay below green and close the daily below Sun[day] high we should be good for continued downside imo,” he noted while referencing the below chart.
As long as we stay below green and close the daily below Sun high we should be good for continued downside imo… pic.twitter.com/DFIemLyQk7
— George (@George1Trader) March 30, 2020
Because there is just over 24-hours left until Bitcoin’s monthly close, how it trends in this relatively short time frame will be critical for determining which direction the aggregated market will head throughout April.
Featured image from Shutterstock.
