- Analysts study Bitcoin trend lines to determine if there would be a Thanksgiving of Christmas rally
- Bitcoin finds a new support
- Bitcoin needs to hold gain over the $7k level in the next few days to post more gain
Bitcoin News Today – After plunging towards the $6,500 level as predicted, Bitcoin (BTC) has recovered slightly over the $7k level. Analysts have been studying the trendlines of the coins to see if there is any hope of a Christmas or Thanksgiving rally.
Will There Be a Thanksgiving or Christmas Price Rally?
Bitcoin (BTC) experienced a major dip earlier this week. The world’s largest digital currency by market cap dumped to $6,550. Nevertheless, the digital currency has returned to its consolidation area in the low $7ks. Bitcoin has moved back over the 50-hour moving average. It has been trading sideways over the past few days, with resistance at the $7,300 mark.
Bitcoin (BTC) Price Today – BTC / USD
Over the past seven days, the price of Bitcoin is down by 12 percent and the charts are still looking ugly. The 200-day MA seems to be leveling out and it might head south if the downtrend continues. The last time BTC showed such a trend was in May last year, and a year of losses followed. The weekly chart is also not looking good, with the first candle forming beneath the 50-week MA since April.
The 200-week moving average that provided major support during the crypto winter is presently at $5,000, which could be the highest bottom for the bear movement. Crypto traders and analysts have been eyeing trendlines for the chances of a rally for Christmas or Thanksgiving.
Josh Rager – a digital currency analyst and trader – recently pulled out a five-year chart pointing out that BTC is still in a strong upward trend, but that line is now being tested. Linear charts in the near time frames are more bearish but long-term projections remain bullish. A bounce off the most traded price last year – $6,500 – could signal that this was the bottom. BTC needs to hold the $7,000 support level for the next couple of days if it is to measure any further gains.
Altcoins Still Blindly Follow Bitcoin (BTC)
The rest of the alternative coins in the market are still blindly following Bitcoin (BTC) and they have bounced off their recent bottom. The valuation of the crypto market tested its lowest level over the past seven months on Monday, with a dump to $180 billion. The digital currency markets have recovered slightly since then and it has returned to $197 billion. However, before any Christmas rally can be considered, further consolidation needs to take place around the $200 billion levels.