Why Bitcoin is On The Verge of Hitting $7000 Mark
At the moment, Bitcoin is trading at a 65% drop from its all-time high
An Analysis of Bitcoin’s Resurgence
Over the last 24 hours, bitcoin prices have soared higher with a 4.5% increase. At the moment, bitcoin is valued at $6728, the highest figure in the span of seven days. The largest crypto still dominates the industry in terms of market capacity. The currency market cap stands at $116.27 billion. Over the last three months, bitcoin has dropped, but in September it started an upward resurgence hitting a growth of 10.51%.
Comparing with its all-time high, bitcoin has dropped by 65%. However, the current happenings are moving towards in favour of the bulls. Analysts are looking at possible supports areas and any resistance points moving forward.
On the short-term basis, bitcoin value has witnessed a bullish move. From mid-August, bitcoin rallied from a low of $5858 to hitting a high of $7429 by early September. The figure represented a rise of 26.70%.
However, along the way, the market run into a resistance point. The Fibonacci Extension forced bitcoin price to settle at $7384. At this point, bitcoin’s value started moving downwards again.
The cryptos decline was halted when it met a Fibonacci Retracement level. The decline stopped at $6189. At this point, the support level was attained but later rejected and the price reversed.
Over the recent past, bitcoin has moved over the .5 Fibonacci Retracement to settle at $6639 on its way to hitting the $7000 mark. A closer look at the market shows that bitcoin recently faced another resistance but on a short-term only to settle at $6775. The upward movement paused for a moment.
What The Future Holds
In the coming days, if the upward movement continues above $6775, a notable resistance is expected. If this level is attained, we will see bitcoin price settling at $6862. In case the bulls activity continues, we might see bitcoin price standing at between 6945 and $7027. Psychological resistance will also come into play and settle along the $7027 level.
As an alternative, In case the bears' action lowers the price of bitcoin, an immediate support level will be established at around the 5 Fibonacci Retracement point which will be priced at $6639.