- Bitcoin starts the weekend in the green
- Analysts are wondering if Bitcoin bottomed at $6,500
- Bitcoin is still bearish on the monthly chart
Bitcoin News Today – Bitcoin (BTC) seems to be starting the weekend pretty well, as the digital currency continues to crank higher. BTC just broke over the $7,600 resistance level, and it is trading close to the $7,900 mark at press time. This sharp move has led many analysts to wonder if the plunge to $6,500 was the bottom and a trend reversal has finally started.
Bitcoin Still Has a Long Way to Go
The world’s largest digital currency by market cap still has a long way to go before one can confirm any considerable trend reversal. Today is another day of amassing gains, as the digital currency topped out at $7,850 a couple of hours ago. The 5-day chart of Bitcoin shows a very bullish picture. However, looking at the monthly chart of the coin tells a different story.
Bitcoin (BTC) Price Today – BTC / USD
The price of Bitcoin (BTC) is down by about 30 percent in November to bottom out at $6,550. However, Bitcoin is up by about 20 percent since it tested that six-month low on Monday but it still has a lot of work to do. The next major resistance is around the $8,200 zone. Over that level, the digital currency needs to break over $9,000 for technical indicators to start turning bullish.
There Has Been No BTC Capitulation This Year
Crypto analysts have pointed out that unlike last year when the price of BTC plunged by 50 percent in just a few days, there has been no capitulation this time around. It has just been a steady selloff over the past five months. In a tweet, Crypto Capital Venture said:
“Bitcoin has been down 50 percent since June, but there has not been any type of capitulation (like what we saw last November/December).”
Bitcoin has been down 50% since June, but there has not been any type of capitulation (like what we saw last November/December)
That’s something to always be prepared for in the back of your mind
Even another 40% down would set BTC up for a really nice higher low on weekly
— Crypto Capital Venture ⚡ (@cryptorecruitr) November 29, 2019
A further decrease of 40 percent will send the price of BTC to the $4,600 zone, which is still pretty much higher than last year’s bottom. However, this would entail a total decline of 67 percent and cause a lot of anxiety within the industry. Still, this correction would not be as heavy as the dump of 84 percent last year.
The Crypto Winter inculcated a stronger sense of HODLing, which might be why the digital currency will not test those lows again and could well have been at the bottom already for this bear run. The people enjoying these short-term pumps and dumps are day traders. Whereas, long-term traders are looking for accumulation areas.