Bitcoin Bounces Off “Important Support” Level to $6,900, Did We Hit The Bottom?
- In just one day, Bitcoin dropped to $6,400 and climbed back above $6,900.
- Bitcoin price crash hattrick took the price from $7,100 on Dec. 16 to $6,425 on Dec. 18. But Bitcoin didn’t stay here, it bounced off this level today.
At the time of writing, BTC/USD has been trading at $6,872 with 24 hours gains of almost 3% as per Coincodex while managing the trading volume of nearly $560 million on top ten exchanges with real volume.
A short story about Bitcoin: pic.twitter.com/YT7aUnMNAm
— WhalePanda (@WhalePanda) December 18, 2019
BTC still in a Bear Market
$6,400 was the first key level that strongly defended its position. However, economist and trader Alex Kruger points out that this is a “bear market.”
He points to his observation from late November where he shared that the price action points out that this is a bear market and “many miners will capitulate if hash growth continues unabated.”
The #BTC price dropped below $7000 today 😢 Hopefully we see a recovery soon. Here's an updated BTC Mining Hardware Break-Even Price chart for your convenience, don't forget you can use our Mobile App to get this data in real-time! 🙌 pic.twitter.com/NOHZFdZgb7
— f2pool (@f2pool_official) December 17, 2019
However, the bear market doesn't mean the price will go to zero as we witnessed from November to March which he says was a bear market as well.
— Peter Brandt (@PeterLBrandt) December 18, 2019
With today’s drop meanwhile, Bitcoin price touched the support level on the parabolic uptrend that has been intact and on the run since January 2015. This has been the first time since March 2019 that BTC price hit the support.
Was $6,400 the Bottom?
Was that the bottom?
My Uber driver said it was.
— Jacob Canfield (@JacobCanfield) December 18, 2019
Is it possible that we finally hit the bottom of this bear cycle as many have been predicting? Apparently not!
Relief rally or not, BTC is nowhere near bottom.
— MAGIC (@MagicPoopCannon) December 18, 2019
TraderXO says it’s just a temporary low and he is now waiting to short from higher up around the $7,000 mark. Bitcoin according to him could first fill the CME gap at $7,100 before making its way down again.
As Kruger also said, “It is a long way until the halving” and veteran trader Peter Brandt who has been calling out for $5,500, also expects it to be around July 2020, which is two months after the Bitcoin reward halving.
Does this look like a THE $BTC bottom to you?
(THE bottom = long term bottom, holds beyond the halving) pic.twitter.com/keEQbAIVOB
— Alex Krüger (@krugermacro) December 18, 2019
Trader Scott Melker also points out that the massic descending channel is still intact on the weekly.
“Bitcoin is still in a downtrend market structure is definitively BEARISH,” said Melker.