For months, Bitcoin’s downward trend has had everyone and their mom in a tizzy about whether or not the experimental digital currency is headed to zero, but a common resistance level has just been broken
While mainstream media rages on with extreme cryptocurrency FUD, enthusiasts and veteran crypto traders are sticking to a positive outlook, and it’s obvious by the return of some heavy trading bitcoin bulls.
Once February 2018 came around, it was easy to see just how bearish the Bitcoin market had become when it topped out at around $11700 and headed down for a week afterwards. That 11700 level was predetermined by the bursting of the bitcoin bubble in December 2017 at $20,000 and a second try to $18000 just after the New Year, which ended in ruins for the coming weeks. By early February, it had reached as low as $6300. It wasn’t until a publicized Federal Banking Committee meeting that showed no signs of the U.S. government imposing any new laws or regulations on cryptocurrency that Bitcoin Bulls were back at it and pushed to $11700 by late Feburary, helping to solidify the downward trend seen in the chart below when they took their profits.
However, a second attempt by bulls to rush the market upward about a week later failed to break the same resistance level of $11700 and ended up heading downward toward, and subsequently bouncing off, a support trend line that goes as far back as late October 2017, the same support line that gave us that $6300 bottom in early February this year.
Now, the resistance is real as media FUD pushes bears to keep selling, but a crucial level of resistance has just been broken: $8200. This level is crucial because it’s a continuation of a broader downward trend established by the second bounce at $11700 in early March.