Bitcoin’s latest rejection within the lower-$7,000 region led the cryptocurrency to break below its key support at $6,800, a level that bulls are currently in the process of reclaiming.
This ongoing rebound comes as bulls attempt to regain a key technical level that was lost in the recent selloff, with a sustained movement above this level potentially providing BTC with some short-term momentum.
One prominent trader is now noting that he is eyeing a few key price levels that lie just above and below Bitcoin’s current price for insight into where it will trend in the future, with its reaction to these levels potentially determining its mid-term fate.
Bitcoin Bulls Strive to Recapture Key Technical Level During Intraday Rebound
Bitcoin is currently in the process of rebounding from its overnight lows of $6,600 that were set in the midst of the intense selloff that followed Bitcoin’s rejection at highs of $7,200.
In the time after BTC set these lows, the crypto has been attempting to recapture the support that was previously established around $6,800.
If the benchmark cryptocurrency’s bulls are able to firmly break above this level in the days and weeks ahead, it is possible that this will bolster its price action and lead it higher in the near-term.
A firm break above this level could also allow BTC to recapture its 20-day SMA, which is a key technical level that Jonny Moe – a popular crypto analyst – has been closely watching.
“BTC working on the 20 day defense (now $6765) after another retest of the 50 day yesterday. This range is tightening,” he said in a recent tweet while offering an analysis of Bitcoin’s current technical situation.
$BTC working on the 20 day defense (now $6765) after another retest of the 50 day yesterday.
This range is tightening. pic.twitter.com/iTWWzNOcYR
— Jonny Moe (@JonnyMoeTrades) April 13, 2020
BTC is Hovering Between a Few Critical Levels
Tyler D. Coates, another prominent crypto analyst, explained in a recent post that Bitcoin’s near-term fate could be largely dependent on how it responds to a few key levels in the hours and days ahead.
He notes that its key resistance exists around its yearly open at $7,163, while its support sits at just over $6,400.
“Here are my critical levels for BTC. Resistance: Yearly open at $7,163. Bear trendline currently at $7,127. Support: Quarterly close at $6,425. 12h 50 EMA currently at $6,873,” he stated.
Here are my critical levels for $BTC
Yearly open at $7,163Bear trendline currently at $7,127
Quarterly close at $6,42512h 50 EMA currently at $6,873 pic.twitter.com/yaOohXTAlO
— Tyler D. Coates (@Sawcruhteez) April 12, 2020
As bulls and bears continue engaging in an intense battle for control over Bitcoin’s near-term trend, which of these levels is firmly broken above or below first should offer investors with insight into which direction it will trend in the days and weeks ahead.
Featured image from Unsplash.