According to technical analysts that specialize in cryptocurrencies, $6,400 has the greatest probability of becoming the short-term bottom for Bitcoin (BTC).
Since November 18th, the price of BTC has declined from $8,500 to $7,200, even briefly dipping below the $6,800 mark on margin trading platforms like BitMEX.
While BTC has had a slight rebound in the last 24 hours, a drop to the low $6,000 region remains a possibility as it is a logarithmic channel bottom. There is also strong interest to return this area, which has not been seen since 2017.
Further Drop Likely for Bitcoin?
In previous instances, where BTC had a clean break below its $7,500 support level, the cryptocurrency has historically tested deeper support levels in the low $6,000 region. For example, on May 17th, BTC dropped swiftly to $6,380 before recovering to the $8,000 region.
Since its big drop, the price of BTC has increased from $6,730 to $7,200. However, the recent performance of this asset has investors cautious about re-entering the cryptocurrency market at its current price. One such individual is cryptocurrency analyst Cole Garner.
Confluence forming around the $6400 area as $BTC‘s highest probability bottom.
– Logarithmic channel bottom
– Volume point of control for the last two years
– @filbfilb‘s estimated mining production cost floor
I don’t expect to see a weekly close below that. pic.twitter.com/KfwdcjgIqW
— Cole Garner (@ColeGarnerBTC) November 23, 2019
Josh Rager, a prominent cryptocurrency trader, has also noted that a continuous drop to the $6,000s is possible in the short-term given the weakness in the trends of BTC and other major cryptocurrencies.
Recently, Rager said, “Out of a position right now and waiting on a good entry to, dare I say, short Bitcoin down to the $6ks Looking for at least $7400-$7500s (price could possibly hit slightly higher). Price doesn’t reverse down to $7k again just to…