After posting what appeared to be a grim break below $8,000 yesterday, Bitcoin’s bulls have thus far been able to step up and defend a key monthly support level that is the only thing stopping BTC from posting significantly further losses.
The cryptocurrency’s ability to hold above this level is bullish, and further confirms the possibility that it is in the process of forming a long-term bottom that could ultimately spark the next macro uptrend.
Bitcoin Finds Support at $7,777; Here’s Why That’s So Important
Bitcoin’s recent climb to highs of $8,400 was met with a significant amount of selling pressure that overwhelmed the crypto’s buyers and appeared to have resulted in a strong rejection.
This overt rejection led the cryptocurrency as low as $7,777 a few hours ago, just prior to bulls stepping up and ardently defending this level, which resulted in BTC climbing back towards $8,000. Although the crypto did fave a slight rejection at $8,000, it has still been able to hold above its key support.
The reason why today’s defense of this aforementioned level is so important is because this has been a key historical support and resistance region for Bitcoin, with this being further confirmed earlier this week when its price dipped to this price before starting it ascent to its recent highs.
The Wolf of All Streets, a popular crypto analyst on Twitter, spoke about the importance of bull’s recent defense of this level, telling his followers that he believes the next major movement will favor buyers.
“$BTC: Filled my orders at $7,777 and at the red line at $7,875. A few hidden bull divs. Price held the 21 EMA and closed back above the top of the old range (red). Those are all of the things I was hoping for from this candle. Could still go either way but my criteria are filled,” he explained.
Filled my orders at $7,777 and at the red line at $7,875. A few hidden bull divs. Price held the 21 EMA and closed back above the top of the old range (red). Those are all of the things I was hoping for from this candle. Could still go either way but my criteria are filled. pic.twitter.com/c6dgwV6T1h
— The Wolf Of All Streets (@scottmelker) January 9, 2020
BTC’s Recent Price Action Appears to Be Confirming a Long-Term Bottom
Beyond just expressing some potential short-term bullishness, it does appear that Bitcoin is close to posting a massive rally that will confirm its recent lows as a macro bottom.
“Here are my key areas of support for $BTC and the path that I am expecting / hoping for it to follow over the next 7 – 10 days, Financial Survivalism, another popular cryptocurrency analyst on Twitter, explained in a tweet while pointing to the below chart.
— Financial Survivalism (@Sawcruhteez) January 9, 2020
If this pattern is valid and continues coming to fruition, Bitcoin could see some sideways trading for the next week or so, until it begins a massive rally.
Featured image from Shutterstock.