Bitcoin Needs $6,000 For Extended Rally
DonAlt, a notable crypto analyst and industry personality, recently took to Twitter to issue his thoughts on the current state of the Bitcoin (BTC) market.
He noted that as it stands, many optimistic investors are under the impression that if BTC convincingly breaks above $4,400 — the peak of the cryptocurrency’s micro-rally following December 14th’s $3,150 low — further highs would have a high likelihood of coming to fruition. However, DonAlt claims that this sentiment isn’t sensical, remarking that a “higher low in combination with a higher high” doesn’t conclusively indicate that the bear market has breathed its final breaths.
To back his somewhat harrowing point, DonAlt drew attention to Bitcoin’s price action at the peak (or bottom) of 2014/2015’s bear market. As depicted in the tweet above, BTC posted a higher low and higher high after falling to $165, but fell to yearly lows in rapid succession to liquidate long positions en-masse.
Responding to queries regarding his analysis, DonAlt remarked that while he’s not arguing that the cryptocurrency market looks week, he doesn’t expect any drastic upside pressure until Bitcoin surmounts $6,000.
DonAlt isn’t the only industry commentator expecting for this market to remain inconclusive whether its “bull” or “bear” until the $6,000 price point. Alex Kruger, a markets researcher & trader based out of New York, recently released an extensive thread on the state of cryptocurrency today, touching on key levels. He noted that for Bitcoin to return to a bullish state, BTC will need to rally through $6,000 with a notable amount of public interest — something that currently isn’t present.
What About $5,000?
While the aforementioned analysts are making a case that $6,000 is a key level to watch in the near-term, some have argued that the $5,000 price range is just as important for the medium-term prospects of Bitcoin. Per previous reports from Ethereum World News, Mati Greenspan of eToro remarked that if BTC clearly breaks above $5,000, with volume and community sentiment to back such a move, that would confirm that a reversal had occurred and the bear market could be coming to an end.
Former insurance agent turned full-time markets trader, Financial Survivalism, also recently claimed that he is currently keeping an eye on the $4,600 to $4,800 range for Bitcoin, as that’s where the essential 200-day exponential moving average and long-term bear trendline have found a home.
Leading crypto analysis unit Bitcoin Bravado echoed Survivalism’s astute points. The team took to Twitter to remark that as there is a “lot of confluence” near the aforementioned technical level, there is likely to be major resistance around that level, currently situated right around $4,800. Bravado added that $5,000 will be a psychological level of resistance, especially due to the sum’s round nature.
Photo by Mark Finn on Unsplash
