Bulls Last Stand: Why Bitcoin’s Trend Depends on The Defense of $5,800

Bitcoin price has been more volatile than ever lately after the asset plummeted from $10,000 to under $4,000 in just over a month’s time.

After such a collapse, the leading cryptocurrency by market cap has since bounced and is trading above $6,300 following a successful weekend defense of $5,800 – an important line that according to one crypto analyst says could determine the fate of Bitcoin’s long-term trend.

Recapping The Rollercoaster Ride of 2020 So Far

Bitcoin price has had a rollercoaster of a year thus far, and more so than the cryptocurrency is typically known for.

While the asset class is notorious for its extreme volatility and violent price swings, not even cryptocurrency investors and traders were prepared for the massive price swings 2020 has provided thus far.

Related Reading | Economist: Government Overspending Amidst Crisis is Bullish for Bitcoin 

At the close of 2019, Bitcoin price found support at what the market had then thought was a bottom at $6,400. Starting in early 2020, the first-ever cryptocurrency went on an over 60% rally to well above $10,000.

Ethereum and other altcoins during this time also saw explosive rallies of 100% or more in many cases. All signs were pointing toward a new bull run for Bitcoin ahead of the upcoming halving.

But then the unthinkable happened. A black swan event arrived via a rapidly spreading pandemic, that caused Bitcoin price to tank to $4,000 in a record-breaking decline.

$5,800 is Bulls Last Stand Or Bitcoin Price Could Fall to New Lows

The particularly extreme move caused panic across the cryptocurrency market, and many long-term trendlines and growth curves were violated by the price action.

However, Bitcoin price was very quick to reclaim $5,800 – a key level that was just well defended over the weekend and ahead of the monthly close.

Related Reading | Recent Bitcoin Price Action Isn’t Radical According to Serious Valuation Models 

But why is $5,800 so important? According to one crypto analyst, $5,800 is the last stand for bulls, who must defend the level for Bitcoin’s long-term bullish trend to remain intact.

https://twitter.com/pentosh1/status/1244463885303848968?s=21

$5,800 was the support level that Bitcoin fell to in February 2018, then again and again throughout the bear market. It also acted as a launchpad when Bitcoin broke above it the last time around in early 2019 and is currently holding once again even after this weekend’s violent selloff.

Over the weekend, Bitcoin price fell from $6,700 to as low as $5,800, but already bulls have managed to push the price of the first-ever cryptocurrency back above $6,000 and to $6,300 at the time of this writing.

If bulls can continue to defend $5,800, the leading cryptocurrency by market cap will have set a higher low on the highest timeframes. But with the coronavirus still very much out of control, bears could eventually get the upper hand once again.

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