Bitcoin bulls are being “put to the test” as bears begin to stack sell orders
Yesterday’s Bitcoin rally brought the cryptocurrency to the median region of $ 6,000, with the rising resistance of $ 6,500 proving to be too much for Bitcoin bulls to outperform. This has led to another episode of consolidation at this level.
An analyst notes that Bitcoin bulls are currently being “tested” after losing a key technical level that previously bolstered their price action.
If the bulls want to further extend their new momentum and push higher crypto, it’s imperative that buyers be able to defend crypto from falling below $ 6,350.
Bitcoin loses key technical level after entering consolidation start
As of writing, Bitcoin is trading at just under 3% at its current price of $ 6,490, which is where it has been trading for the past day.
BTC’s recovery to these highs came after its recent drop to lows of $ 5,800, which is the point where the bulls stepped forward and catalyzed decent momentum.
The fact that this short-term uptrend has stalled at its first key resistance level seems to clear up some underlying weaknesses, suggesting that crypto might be poised to face rejection at this level.
Big Cheds, a popular cryptocurrency analyst on Twitter, explained in a recent tweet that BTC recently lost its EMA 8, with this ongoing side bout marking a test for the bulls.
“Bitcoin: 1 hour: Bulls put to the test after losing EMA 8, BB drop and rally down,” he explained as he pointed to the chart below.
BTC’s key support sits at $ 6,350, and a break below this level could be terrible.
Michaël van de Poppe, another popular cryptocurrency analyst, explained in a recent tweet that Bitcoin’s current trading range exists between $ 6,350 and approximately $ 6,500, with this lower limit being the key short-term support for BTC.
He also noted the following: “Bitcoin: Mostly within range, but it’s interesting that this $ 6,350 monthly / weekly level provides support here. It could take advantage of resistance around $ 6,500-6,600 again, but mostly with range Limited and no direction shown Breakout range -> targeting $ 7,100 / 7,300 ”.
If Bitcoin breaks below its short-term support, it will most likely continue to decline until it retests the support that has been set at $ 5,800, with a decline below this level that could lead BTC to a dip free.
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