There is a lot of excitement in the air after the Bitcoin price rocketed 20 percent on March 19. The leading cryptocurrency is already up more than 60 percent since reaching its 2020 low of roughly $3,900.
With that being said, the bulls are still not out of the bear woods, according to trader Josh Rager.
Still bearish
Rager explains that Bitcoin has to flip the $6,400 level, which is regarded as the point of control, to continue its upward momentum. Otherwise, the crypto king could evaporate all of its recent gains.
$BTC rejected off the point of control (highest traded volume price) – a level that we saw act as support twice before the breakdown
— Josh Rager 📈 (@Josh_Rager) March 20, 2020
For me to start to feel bullish, price needs to flip at least $6400 on high time frames
Even then, stocks selling off is not bullish for BTC pic.twitter.com/CjrlzqZtRe
Notably, $6,400 was the most traded level during the 2018 bear market. Bitcoin officially kicked off its massive rally in 2019 by surging above it in May. During the carnage in Q4, it also proved to be robust support.
Yesterday, the bulls tried to surpass it on multiple occasions but got rejected after the first successful attempt.
Bottoming out?
On a positive note, Bitcoin is once again trading above its 200-week moving average just days before a pivotal weekly close. According to trader CryptoBirb, if the bulls manage to win back the $6,400 level, BTC could easily surge all the way to $7,600 since there is very little resistance.
$btc tapping ex-range lows flipped to resistance. Positive for bulls is that there is little resistance between 6.4k and 7.6k
— Crypto₿irb (@crypto_birb) March 20, 2020
Intraday consolidation breakout retest towards 5.4-5.6k would be the most healthy to confirm price action is slowly recovering after Friday 13th PTSD lol pic.twitter.com/6u1fUZjpU6
Source: Alex Dovbnya UToday