Bitcoin (BTC) price has bounced from a recent dip and currently trades above a key resistance area. The top crypto, however, remains delicately poised and has trimmed the latest gains.
Meanwhile, billionaire Mike Novogratz says the upside must breach $7,500 or BTC could be range-bound.
BTC +8% and Crypto Markets Mostly Green
The crypto market is mostly green this Tuesday morning, led by Bitcoin (BTC) gaining over 8 percent.
The rest of the market is also showing signs of recovery, with short-term charts indicating a bounce and a likely period of consolidation.
At the time of writing, Ethereum (ETH) has jumped +8.81 percent and trades at $147.98 to the dollar. XRP (XRP) is +7.57 percent up at $0.21 and Bitcoin Cash (BCH) +7.43 percent at $211.43 against the dollar.
Bitcoin (BTC) has gained over $680 in the last 24 hours and is trading north. The gains, however, remain marginal in the context of the huge losses witnessed in November.
On Sunday, Bitcoin dropped below the psychological support at $7,000 and came close to breaching $6,500. The dip meant that Bitcoin had lost over 50 percent of its value since hitting a high of $13,880 in late June this year. Prices at or close to $6,500 are the lowest Bitcoin has been in six months.
A spike on Monday during the European trading hours saw Bitcoin breach a key bearish trendline. Prices moved above the major resistance line at $7,060 and broke above its100 simple moving average.
Bitcoin BTC to consolidate around $7,000
Bitcoin’s jump to prices near $7,400 on November 25 did not last. A quick retracement followed and left $7,100 – $7,000 a critical region for bulls.
Galaxy Digital CEO Mike Novogratz says that BTC remains 95 percent up on its year-to-date low. However, he adds that a recovery above $7,500 must materialize in the next 24 hours for Bitcoin to avoid becoming range bound between $6k and $7.4k.
“BTC chart needs to recover 7500 in the next two days or we will be in a 6k-7400 range which would be less than pleasant…” crypto billionaire Mike Novogratz.
The relative strength index (RSI) indicates that Bitcoin is in oversold territory. An extended slowdown in sell-off pressure is likely to act as a buffer for attempts by bulls to push prices above $7,500 and bounce back towards its weekly high at $8,100.
There seems to be no major reaction – either attributed to events in China or a recent sell-off by a bitcoin miner. But that also means the price will likely continue to dither and another downside could be in the offing short term.
If BTC consolidation around the $7,000 level runs out of steam and a dip below $7k begins, support would have to come from $6,900 and $6,600. The former is also the 50% Fib retracement level of the recent wave from the $6,515 low to $7,277 high
As always, experts contend that the downtrend offers an opportunity for buyers to enter the market.