Bitcoin may be in for a significant reprieve within the next 36 hours on June 6 according to chat data. Intriguingly, the digital currency appears to be taking a change in direction during trade on the sixth day of each month since the start of this year. Having reached the 20,000 USD mark in mid-December last year, Bitcoin fell to 6,000 USD on February 6. Since then, it has maintained a narrowing price range.
Bitcoin Price Analysis
As of the time of writing this content, bitcoin is trading at the 7,433 USD level according to chart data which indicates that it has gone down by nearly 34% from the previous bearish reversal point at 9,990 USD from May 6. What this means is that the bulls are presently on the defensive and going by the recent Bitcoin historical pattern, it would appear that the cryptocurrency is likely to turn higher within the next 36 hours on June 6. In this case, BTC could revisit triangle (or the narrowing price range) with the closest resistance, located at 9,225 USD.
On the other hand, several long-term technical studies indicate a bias towards the bears, which wasn’t the case in previous instances. Take, for instance, and the crypto token found acceptance beneath the 50-week average. This was the first time such a scenario occurred since 2015. Similarly, the 5-month and 10-month moving averages bearish crossover happened in recent days for the first time since 2015.
Nothing is guaranteed regarding Bitcoin’s price movements. But, there’s a possibility that the virtual currency could pick a strong bid by tomorrow, in line with its sixth-day historical pattern. Even if this scenario plays out, it may be too early to point out a bull reversal, considering the bearish long-term developments, and traders will want to observe more evidence like a high volume break beyond the 7,779 USD weekly high before assuming the bulls are back.