Bitcoin is held up in the $6000 zone failing in several attempts to make it to the $7000 zone. Analysts believe that the cryptocurrency needs a strong move to break through $6,300 to enable the smooth recovery of price to the $7000 zone. Bitcoin in the last two months traded above $9000 before a market crash brought down prices to just $4,000.
In the last, 24 hour Bitcoin oscillated in a close range, constantly quickly losing value. At the moment bitcoin is trading at $6,108.30, according to coindesk indices. Prices have been on a bullish trend within the last 24 hours with some lower levels of volatility. Since last week bitcoin has been struggling to maintain its price hovering around the new $6,000 benchmark.
However, the cryptocurrency is failing to gain enough momentum to surpass the $6000 figure although it has a bullish trend on the charts. There are very many factors holding back bitcoin from developing enough momentum to jump pass the current $6,000 price benchmark the cryptocurrency is stuck at.
First, at the upwards Bitcoin could not mitigate the strong resistance posed at the $6,300 price figure. This area is responsible for Bitcoin’s failure to recover after the mid-march price crush and suppressed the bullish trends over the weekend. By some coincident data indicate that more than 700,000 Bitcoin addresses have their break-even point in the range between $6,170 and $6,350. This is an additional strength to Bitcoin’s resistance below $6,300.
Additionally, the intraday Relative Strength Index is pointing downwards meaning bears are maintaining dominance in the short term. Relative Strength Index identifies major support and resistance zones in the price movement taking into consideration the market structure.
Lasting, the flattened out volatility indicates a slow market meaning traders need some time to make their next moves. The firm consolidation at the weekends means there is an upcoming strong move around the corner most likely by Monday morning coinciding with the reopening of conventional markets in Asia.