Recently, Bitcoin has experienced a setback to the $6,000. But concerns of further decline have eased as it recovered to the $7,000 level in the middle of the week. When Bitcoin fell to $6,500 dollars on the 25th and hit a six-month low, many in the market were pessimistic that bitcoin would fall further below $6,000 dollars.
The current situation on the technology chart is positive for now. According to Coindesk, the time chart and the three-day chart indicate a strong reversal of short-term trends.
The 50-hour and 200-hour moving average has produced a strong crossover. And the 100-hour MA is also expected to produce a strong crossover in the near future, rising above the 200-hour MA. Therefore, if Bitcoin breaks through the resistance line of $7,800, it might recover to $8,200 more.
According to News BTC, experts also expect Bitcoin to rise to the $8,000 level in the near future. Pointing to the defense of several major support lines in Bitcoin.
Juan Villaverde, editor of Weiss Crypto Ratings, an cryptocurrency rating agency, also gives meaning to the defense of key support lines for Bitcoin the past week.
“There have been several times when Bitcoin’s daily closing price has fallen below $7,200, but if it closes above $7,200 on the 29th, the $7,200 support should be considered defensive.” -Villaverde.
He added that $7,200 is important because it is considered the bottom of the 240-day cycle.
It has recovered, but there’s another view for Bitcoin future
Contrary to such a positive outlook, however, voices of concern remain. Cryptocurrency analyst Willy Wu recently predicted that if Bitcoin’s closing price does not exceed $8,300 in November, it could fall further in December as weak inflation cans were created on the monthly chart.
Coindesk also pointed out that if Bitcoin falls below the six-month low of $6,515 recorded on Nov. 25, the strong signals on the chart could be nullified, putting it at risk of further decline. However, under the current circumstances, it does not seem likely to happen.
