- Bitcoin recovers over $7k, after tested a low of $6,800
- Bitcoin Dominance Increases amidst Bearish Markets
- Bitcoin finds new support level
Bitcoin News Today – Bitcoin (BTC) has been on a downward trend over the past few days. The digital currency started yesterday around the $7,600 mark. BTC price fell heavily and tested a low of $6,800, a decrease of more than 10 percent. However, the digital currency has recovered over the $7k level, and it is trading at $7,267 at the time of writing.
The massive plunge in Bitcoin price has affected the entire digital currency market. One of the top losers in the recent crash is Ethereum (ETH). Ethereum broke below the $150 support level and tested a low of $137, which is a decrease of about 15 percent.
Bitcoin (BTC) Price Today – BTC / USD
Bitcoin Dominance Increases amidst Bearish Markets
The dominance level of Bitcoin (BTC) has increased this week to 69 percent. This means that the digital currency has outpaced the rest of the digital currencies in the market, despite the bearish trends. Over the past week, the price of Bitcoin (BTC) is down by about 16 percent. The digital currency started last week at $8,500.
As BTC price plunged towards previous support at $7,600 and the 100-week MA, the digital currency found support and sold off over the $61.8 percent retracement and down to the 65 percent retracement of this year’s bull run, where it has found some intermediate support. The distance between both Fibonacci retracement levels is known as ‘golden pocket,’ where traders look to profit from shorts and take on long positions. This explains why the digital currency has found some support here.
Is Bitcoin Close to a Local Bottom?
From the daily chart of Bitcoin (BTC), it is obvious that the digital currency has hit the bottom of the downward channel in which it has been trading since July. This appears to be an area in which the balance has favored a bullish reversal. After breaking below the descending triangle at $9,550, the technical target on the following down move is slightly over the $6k mark. Based on trends and technicals alone, it appears as though there is a good argument for BTC finding some buying interest in the $6k range.
Signs of Bitcoin Bottoming Emerges
Bitcoin (BTC) bulls have obviously lost crucial support at the 100-week MA, which is partly responsible for the accelerated price drop today. Nevertheless, other indicators being in sentiment, trend, volume, and pattern analysis all appear to point to their signs of a nearing bottom. The $7,600 mark would be a vital level for the bulls to reclaim. However, it might be difficult. Perhaps, the digital currency might spend some time around the $7k level before there is a significant bullish reversal.