A fresh analysis shows that Bitcoin bears have a tough job if they are to dominate the BTC market. The statistics indicate that Bitcoin’s number of strong support levels is growing with each passing month. The latest addition to the list of support which is currently at $5,830 completes a trend line which connects back to November 2011 and August 2016 low.
Bitcoin bears Have To Over Come A Seven Year Rising Trendline
Until October 31, the two main support levels were the 21-month EMA and a trendline that was drawn between the low recorded in June and the August low.
Crucially, the 21-month EMA was the level that the bears had to beat till last month. So, if a close was recorded below that EMA, it would have been seen as reviving the sell-off from the record high attained in the previous year.
While this 21-month EMA remains crucial support, the next make or break level is the seven-year-long rising trendline.
It’s because the trendline support which was around $5,300 as of last month, has now moved closer to the current price. It also seems likely to rise over the $6,300 as of next month. Therefore, anyone who might call a break below the 21-month EMA a sign of bear revival could be proven wrong.
Currently, Bitcoin is trading at $6,355 according to coinmarketcap.com which represents a -0.52 percent change in the past 24 hours.
Here are some monthly BTC trading charts courtesy of CoinDesk
On the chart above we see a break below the $5,830 trendline support would strengthen the Bitcoin bears grip. Consequently, this would allow a drop to $5,000 which is considered to be the next psychological support.
However, the bulls would feel emboldened if BTC produces a strong bounce off that vital support.
Based on the crucial rising support trendline, can we expect to see BTC stage a rally soon? Share your thoughts in the comment section below.