Bitcoin prices have been fluctuating within a reasonably well-defined range over the last week, trading primarily between $6,000 and $6,600.
The digital currency fell below this range on Tuesday, August 14, reaching as little as $5,900.38 on the CoinDesk Bitcoin Price Index (BPI).
However, Bitcoin quickly bounced back, only staying south of the $6,000 price level for a matter of hours, additional BPI figures show.
At the time of report, Bitcoin was trading at $6,482.92, near the top of its aforementioned weekly range.
[Ed note: Investing in cryptocoins or tokens is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment.]
Since Bitcoin has remained above $6,000 for much of the last week, some analysts took that to mean that the digital currency has been establishing price support.
Charles Hayter, co-founder and CEO of digital currency data platform CryptoCompare, was in that camp.
“Bitcoin has been building a lot of support at this level,” he stated.
“There is strong buying pressure at these levels,” emphasized Hayter.
“Bitcoin faces binary scenarios going forward and Sanctuary from the bloodbath in the last six months,” he noted.
Jon Pearlstone, publisher of the newsletter CryptoPatterns, offered a similar take on the matter.
“Bitcoin is building strength near the $6000 level,” he stated.
Going forward, “Bitcoin now faces two critical resistance levels where higher prices would allow bulls to breath much easier,” said Pearlstone.
First is the $6450 (coinbase) level which held for nearly three months earlier this year. Bitcoin is struggling to break out above this resistance level as we write this. Above $6450, $7250 will be the next real challenge which could lead to another run at $8000.
Disclosure: I own some Bitcoin, Bitcoin Cash and Ether.