Bitcoin remains well above the $6,120 low it painted a week ago, stabilising around $6,500 before taking another leg up last night. We will shortly find out whether that move was sustainable – a $300+ pop is generally followed by a bit of a pullback, and more recently we’ve had the ‘Bart’ patterns to contend with. This time, it looks like we’re getting some reasonably healthy consolidation around $6,700, though the long wick at the top of the big green candle is a little concerning (it means that traders weren’t confident about maintaining that high, and the markets may be volatile for a while).

On the downside, there’s clearly support in the $6,400 area, as we have seen over the past week. If that does not hold, then the $6,100 low will come back into play. If that gives way – and at this point, there’s no immediate danger of that happening – then we’re into a whole new phase of the downtrend. The long-term support line is already hanging by a thread after that last crash, and we can expect to see falls back towards $5,000 if it is broken decisively.

For now, the picture is more optimistic than that, albeit uncertain. On the upside, we’re looking for a strong move above $6,800, with the $7,000 figure representing a psychological barrier too – so we will likely find some resistance there. In the medium term, recovering ground to $8,000 would give the market greater confidence and pave the way for a renewed bull trend.

Right now, volumes are low and so few of the recent moves can be considered decisive. Technicals are ambiguous, and although buying activity has increased, there is still an overall feeling of caution in the markets. As ever, look for both price and volume to confirm any developments.

Red hot news, scorching wit and searing opinion pieces from Crypto Inferno.

Join us on

Telegram: https://t.me/crypto_inferno

Reddit: https://www.reddit.com/r/CryptoInferno/

Twitter: https://twitter.com/CryptoInferno_

Facebook: https://www.facebook.com/CryptoInfern!