The crypto space has enjoyed a lot of positive news as of late, but none of it has moved crypto prices considerably higher. This is especially the case for Bitcoin.
In response, a technician has reviewed the price levels that could be the triggers to cause Bitcoin’s price to rally.
Let’s discuss.
The news shrugged off by BTC investors
Recent positive BTC news has failed to lure Bitcoin investors to buy. For example, then news broke Monday that Tether had issued 250 million tokens. Bitcoin’s price moved higher to almost $6,300 from $6,100. By the end of the day, it had fallen back to around $6,100.
Then, on Wednesday, Facebook (NASDAQ:FB) announced it was reversing its position, somewhat, on accepting crypto ads. We reported that the social media giant had decided to allow crypto-related ads on its platform once again, but with a few terms and conditions.
On that news, Bitcoin just traded sideways at the $6,000 price level.
Bad news outweighing the good news
These positives seemed to mitigated by the negative news happenings that have plagued the space, especially over the month of June.
For example, last week Bitcoin fell 6% in one day after Japan financial regulators ordered crypto exchanges to improve their practices against money laundering, terrorist financing, and unauthorized access.
And don’t forget the attacks on two exchanges in South Korea. Those exchanges were Bithumb and Coinrail. The attacks happened within weeks of each other.
We reported that the Coinrail attack occurred during the weekend of June 8. The bandits made off with 70% of the exchange’s digital assets.
We also reported that Bithumb, the second-largest exchange in South Korea by trading volume, was ripped off to the tune of at least $30 million in cryptocurrency.
Forget about the happenings, look to the charts
Fundstrat’s Robert Sluymer brought his expertise as a trader who makes decisions based on technicals to address what could make Bitcoin’s price move higher, noting that there’s a key level Bitcoin needs to pass for a real comeback to happen.
Earlier this month, BTC hit $7,000, which Sluymer said at the time was a very critical low. He noted that the firm has said that $7,000 indicates very, very critical support.
“We’re big fans of 15-day moving average as a proxy for trend. We can see that from late 2017 through 2018. It’s not perfect, but as a proxy for whether a trend is positive or negative, it’s pretty good.”
That’s one of the reasons when we talked about the $7,000, $7,800 level being very critical resistance levels that Bitcoin had to get through in order to reverse that downtrend, he said. He added that $7,000 was very important with downside.
He explained that it was important because:
“What we have now is a series of higher lows being broken. And by definition, you are now starting to see lower highs, and you have a downtrend in place. And Bitcoin is now below that trend line. If Bitcoin breaks below $6,058, that is absolutely critical support.”
A break of that price would take Bitcoin all the way down to $5,500.
The no man’s land
On CNBC’s Fast Money show, Sluymer said today’s Bitcoin investor is in no man’s land from a trading standpoint.
If you’re a very short-term trader, consider Fundstrat’s critical stop level at the $5,800 $6,000 level. Also, keep track of the key resistance level, Sluymer said.
“The key resistance level that I think Bitcoin has to get through is around the 15 day moving average. And that’s $6,300 to $6,400.
If it can rally through that, you’ve got a chance that Bitcoin is going to start to turn. Until the downtrend is intact – and you have to respect that downtrend – you gotta wait for confirmation from a price standpoint before implementing long-side trades.”
Fundstrat’s Tom Lee put in a $25,000 price target for BTC to hit by the end of the year. However, on Wednesday, Sluymer said that target is “going to be tough for Bitcoin to hit.”
This article appeared first on Cryptovest
