Bitcoin to Retest $6,500? Analysts Say Such Price Action is Likely 16

Bitcoin to Retest $6,500? Analysts Say Such Price Action is Likely

Bitcoin May Soon Return to $6,500

Bitcoin has seen quite the week, trading at $6,400, $7,400, and everywhere in between over the past seven days. Right now, the asset is at $7,200, seemingly forming a bottom at $6,400.

Though, some top analysts are still wary that the bottom is not yet in.

Disk jockey-turned-crypto trader Scott “The Wolf of All Streets” Melker recently reminded his followers to “tread lightly,” asserting that investors shouldn’t get too caught up in the fact that Bitcoin bounced 10% from the local low.

Melker noted that two bearish divergences have formed between the BTC’s price and the Relative Strength Index (RSI), which largely show that the latest price recovery was “more like relief than reversal,” implying that a continuation to the downside has a decent opportunity of playing out.

Also, Cantering Clark has argued that Bitcoin’s price action over the past week is eerily reminiscent of what was seen in late-October, which was when Chinese leader Xi Jinping’s pro-blockchain comments seemingly were the catalyst for BTC to jump 42% to $10,000. Marking down the similarities of these two separate events, he remarked that there is a good likelihood that Bitcoin will be seeing a “series of head-fakes,” then a “slow drift back down to the lows” of $6,400 to $6,500 in the coming weeks.

It isn’t only Cantering Clark and Scott Melker who are reminding their followers that Bitcoin is not yet bullish.

Josh Rager, a popular cryptocurrency trader, recently noted that it is far too soon to be bullish after the $1,000 move earlier this week. Rager looked to the fact that BTC is still stuck below a trend line formed after October’s infamous China pump, adding that unless it breaks this level and the $8,000 resistance, a reversal rally will end abruptly.

Macro Bottom Forming

While a retest of the local lows may be imminent, some are sure that a macro bottom is forming.

Per previous reports from Ethereum World News, trader Byzantine General recently noted that BTC is currently trading below its two-year moving average, which he claims implies that BTC is in oversold territory, thus meaning that the “bottom is probably not that far away.”

Indeed, as the chart he posted alongside his comment shows, every time Bitcoin crossed under this key level, it bottomed shortly afterward, before breaking higher.

There’s also been an observation from Willy Woo, partner of Adaptive Capital, who recently remarked that on-chain momentum is “crossing into bullish” territory after a multi-month downturn. With this in mind, he asserted that the “bottom is most likely in,” meaning that any move lower than the $6,500 plunge “will be just a wick in the macro view.”

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