Bitcoin’s position within the lower-$7,000 region has been ardently defended by the cryptocurrency’s bulls over the past several hours and days, with the crypto’s overnight drop into the upper-$6,000 region being met with significant buying pressure that allowed BTC to post a sharp bounce to highs of $7,400.
It is important to note that this recent movement has further confirmed the notion that BTC is currently forming a bullish inverse head and shoulders pattern, but analysts are noting that the crypto needs to decisively break above $7,500 in order for a massive bullish rally to commence.
Bitcoin Bounces from Upper-$6,000 Region, But Finds Resistance at $7,400
At the time of writing, Bitcoin is trading up roughly 2% at its current price of $7,285, which marks a notable climb from its daily lows of $6,800 that were set last night during a sharp sell off.
The fact that this downwards movement was met with significant buying pressure confirms that this price region is a strong region of support, and this could bolster BTC’s price action in the near-term.
Following this sell off, Bitcoin was subsequently rejected at $7,400, signaling that this is a strong level of resistance for the cryptocurrency. Further supporting this notion is the fact that this is the price at which BTC’s rally from its recent lows of $6,500 stalled.
The Cryptomist, a popular cryptocurrency analyst on Twitter, explained in a recent tweet that she believes multiple technical factors are pointing to the possibility that the crypto’s recent lows will mark a long-term bottom, with a movement to $11,000 possibly being in the cards.
“$BTC: Stopped out short in profits. Forget my $6.4 call. Triple bottom on RSI. Wedge Apex. Heikin Ashi Doji. Bottom could be in and change of trend towards $11k COULD be in progress. Will update on daily close,” she explained in a recent tweet while referencing the chart seen below.
Will Break Above $7,500 Catalyze Bullish Momentum?
In the near-term, the key level that analysts are watching is $7,500, as a decisive break above this level could confirm the bullish inverted head and shoulders pattern that BTC has been forming, potentially marking the crypto’s recent lows as a long-term bottom.
Galaxy, a popular cryptocurrency analyst on Twitter, concisely spoke about this level in a recent tweet, saying:
“Break $7500 and it’s showtime.”
The next few hours and days will likely elucidate whether or not Bitcoin will continue to trade within its recently established trading range between $6,800 and $7,400, or if its bulls will step up and confirm the hints of bullishness that are currently expressed on its chart.