The odds that the bear market for cryptocurrencies is over drastically increased yesterday.
Litecoin which often acts as a leading indicator for price movements in Bitcoin recorded a double-digit percentage increase in price early in the day and this was followed with increases in bitcoin and to altcoins.
Prior to the increase, bitcoin was trading at its weekly 200 simple moving average (SMA).
A move below this point would have been extremely bearish for price prospects.
However, price managed to erase all of last weeks losses and form a higher low assuming that price does not erase these gains before the week finishes.
Price has already dropped below the 200 exponential moving average which many analysts consider bearish.
The last time price rose, it met resistance at the 200 EMA making this a key resistance point to monitor now.
The former high is around $4040 making this another resistance point to monitor.
Price overcoming these levels would lead to a significantly more bullish market structure.
Price is currently consolidating around $3621 which is the point of a breakout which took place in January after yesterdays spike.
Yesterday’s spike met resistance at $3684 which formerly acted as an important support point before price broke below in January.
There are a number of key levels to monitor below price.
$3576 formerly acted as a point of buyer liquidity during bearish drops and this was also the point that price dropped to yesterday when it was initially retracing from its rise.
Price disregarded $3476 as a resistance level during yesterdays but it is likely to come into play as support in the event of a fall as it has been an important level for recent price action.
- Odds that the bear market is over have drastically increased after yesterdays price action.
- Higher low formed on the weekly. Weekly 200 EMA and $4040 are key longer timeframe resistance points to monitor.
- Price currently consolidating around $3621.
- Resistance level above price is $3684.
- Support levels to monitor below are $3576 and $3476.
Bitcoin [BTC] Price: Is the Bear Market Over? was originally found on Cryptocurrency News | Blockchain News | Bitcoin News | blokt.com.