Bitcoin has surged an impressive 75 percent from its lows set in December 2018. However, the cryptocurrency king is at a critical juncture which will put bulls and bears at odds.
In order to confirm whether the current bullish trend will last, we need to watch how Bitcoin (BTC) will act at the $6,000 resistance level. This price point was a critical support level for Bitcoin for much of 2018 before it broke down in November of that year. After breaking this support, Bitcoin quickly dropped another 50 percent.
Therefore, if Bitcoin manages to break $6,0000 decisively, then the new bullish trend would be confirmed. However, if it fails yet again, it could likely re-test lows below $4,000.
The breakdown from $6,000 occurred sometime in November 2018 from a descending triangle which was building since the beginning of 2018.
After some price stability in March of this year, Bitcoin exploded upwards at the beginning of April, which many analysts considered to be the possible end of the 15-month bear market. Now the question is whether or not this price spike can be maintained — and if the decisive price point of $6,000 will hold if BTC manages to break further upwards.
According to Forbes contributor Jesse Colombo, investors would be smart to enter Bitcoin at its current price regardless. This is because BTC remains the single best hedge against a current crisis, in addition to hard assets like gold and silver.
Although Bitcoin’s current price seems to be on shaky footing, the next few weeks will prove to be crucial for its short-term growth. Even if you’re a long-term holder, it could prove beneficial to dollar cost average downwards if a downtrend follows. This way, investors can benefit from a potential continuation of the bullish trend and also accumulate further if BTC experiences a further price decline.
Do you agree that the $6,000 price point is crucial for BTC? Let us know your thoughts in the comments below.