To put it lightly, Bitcoin has not fared well over the past weeks. The price of the leading cryptocurrency, ever since rejecting the key $10,500 resistance as if it was a stone wall, has acted weak, losing support and support.
After two weeks of bearish price action — punctuated by a steep drawdown over the past three days that took Bitcoin from $10,000 to as low as $8,520 — it should come as no surprise that investors are once again fearing a return to a bear market.
Though, a number of analysts are still optimistic, touting an array of fundamental and technical reasons as to why they think Bitcoin has an upward trajectory in the coming months.
Reason #1: Macro support to be found around $8,500
While Bitcoin is still dramatically lower than it was just days ago, it decisively bounced off the $8,500 support (depicted below) and is now trading at $8,925 as buyers have stepped in at the eleventh hour.
This relatively strong bounce has been seen as bullish by a number of analysts; at and around $8,500 there exists a confluence of macro supports and key technical supports, meaning a reversal in this region supports the bull case.
Filb Filb, the pseudonymous crypto trader that predicted Bitcoin would bottom in the mid-$6,000s and would subsequently reverse into the $9,000s in the start of 2020, explained this further when he listed out the five key support levels around $8,500:
- 200-day simple moving average at $8789
- The point of control of the whole move at $8600
- The 50 percent Fibonacci retracement level
- The 20- and 50-week moving average at c.$8500
- The CME gap.