- Bitcoin (BTC) is showing some positive signs
- BTC recovers from a multi-month low to form a crucial breakout pattern
- Bitcoin needs to break over the $6k hurdle point to prevent further losses in the near term
Bitcoin News Today – Bitcoin (BTC) is currently showing some positive signs. The digital currency is currently correcting higher from the swing low of $3,906 against the US dollar. Bitcoin is now forming a crucial breakout pattern, and this pattern will likely determine the next move.
Bitcoin Forms a Crucial Breakout Pattern but Capped on the Upside
This past week has been really bloody for the digital currency market, as the majority of coins in the market lost a significant fraction of their values. Some digital currencies even lost as much as 90 percent of their value. The world’s largest digital currency by market cap, BTC, plunged below the $6k and $5k marks against the U.S. dollar.
The price of the digital currency even broke below the $4,200 support mark and settled well beneath the 100 simple moving average. Bitcoin formed a new monthly low close to the $3,906 mark and the price is presently correcting higher. The digital currency recovered losses and surged over the $4,500 and $5k hurdle points.
Bitcoin (BTC) Price Today – BTC / USD
Moreover, there was a break over the 23.6 percent Fibonacci retracement level of the recent swing from the high of $7,974 to the low of $3,906. The bulls were able to push the price of the digital currency over the $5,500 hurdle point. Nevertheless, the $6k hurdle zone acted as strong resistance for the bulls.
The 50 percent Fibonacci retracement level of the previous swing from the high of $7,974 to the low of $3,906 is also acting as a major hurdle. At press time, there is a formation of a crucial contracting triangle with a hurdle close to the $5,350 mark on the 4-hour chart of the BTC/USD trading pair. If the digital currency breaks over the triangle resistance, it could start a fresh rally over the $6k hurdle point.
Nevertheless, the major hurdle of the coin is close to the $6,450 and $6,500 marks. There is also a formation of a connecting bearish trendline with a hurdle close to $6,450 on the same chart. To start a fresh and convincing rally, Bitcoin (BTC) needs to break over the $6k hurdle point and gain traction over the $6,500 barrier.
Has Bitcoin Found a Bottom?
If the price of the digital currency fails to break over the $5,500 and $6k marks, chances are it could start another bearish move. A break below the $5k and $4,850 marks is likely to pave the way for more losses. The immediate support of the coin is close to the $4,200 mark. Below that level, the next support is at $4k.