Bitcoin needs to hold $6,000 or things will get even worse
BTCUSD has recovered decently on Thursday as the coin managed to attract buyers at early-February lows marginally above the $6,000 threshold. Moreover, the cryptocurrency market breathed a sigh of relief after the influential SEC official said bitcoin and Ether are not securities. These two factors drove bitcoin north, to $6,700.
Despite the local rebound, the market continues to look vulnerable to new losses. By the way, the recent dip below the $6,400 area in BTCUSD was in fact a confirmation of a deeper downtrend and has opened the way to the key psychological support at $6,000. At this stage, it’s very important for the digital currency to confirm the recovery above the $6,400 zone as it could help to prevent another sell-off.
In a wider picture, there are still a lot of risks in the industry, including the regulatory ones. The ongoing bearish trend will come to an end at some point, but it’s hard to predict the exact levels that will stop the bears as the market itself is quite sporadic, volatile, emotional and unpredictable by its nature. If the coin derails the $6,000 figure, new lower lows will be formed.
Despite the local rebound, the market continues to look vulnerable to new losses. By the way, the recent dip below the $6,400 area in BTCUSD was in fact a confirmation of a deeper downtrend and has opened the way to the key psychological support at $6,000. At this stage, it’s very important for the digital currency to confirm the recovery above the $6,400 zone as it could help to prevent another sell-off.
In a wider picture, there are still a lot of risks in the industry, including the regulatory ones. The ongoing bearish trend will come to an end at some point, but it’s hard to predict the exact levels that will stop the bears as the market itself is quite sporadic, volatile, emotional and unpredictable by its nature. If the coin derails the $6,000 figure, new lower lows will be formed.