Analysis: Bitcoin bounces up, price reaches $71,500
Bitcoin has found support at the price level of $67,000. From there, the coin has been able to rise, but has not yet made a higher high. Let’s look at the graphs.
How is BTC doing?
We’ll start this analysis with a look at the daily chart. Here, each candle represents 24 hours, allowing us to clearly see the key price level – the red zone from $62,000 to $67,000 – and Bitcoin’s recent trend.
Bitcoin was first in a phase where the currency made lower lows and lower highs: the formula for a downward trend. Because this happened at an important price point (the red zone), it was uncertain whether the price would hold strong. The currency could fall a lot before reaching the next support point.
Fortunately, it only fell to $56,500. Here there were enough buyers to push the coin up, after which the coin ended up back in the red zone. From here, Bitcoin finally started making a higher high, turning expectations positive again.
BTC then rose above the red zone, made a small decline to the upper limit (around $ 67,000) and settled here for a while. From here it was a matter of waiting to see whether the currency would sink even deeper into the zone before making a further rise.
No higher high yet
That decline has not materialized so far, as the currency has given a strong reaction. To analyze this better, let’s also take a look at the 4-hour chart. Here we get a more detailed look at the recent price action, and we can really see how the coin bounced off the $67,000 mark.
Any move up to this zone caused a small bounce, and in recent days the currency was even able to make further gains. The price has reached a price of $71,700, just shy of the recent high of approximately $72,000 (indicated by the blue line).
Until BTC gets over this, the coin will likely continue to move between the red zone and this line. The red zone is still strong support, which prevents the price from falling much further. But if the coin does cross the blue $72,000 line, the price will likely move higher – with or without a small correction in the rise. Therefore, keep a close eye on these levels and the trend.
