For the past two days, Bitcoin price failed to break above the pivotal $7,000 level, trading at around $6,900 during most of that timespan. The price movement also confirms the further weakness for BTC that was established last week.
The recent price trend could also be affected by additional bad publicity directed at the cryptocurrency. A team of Bank of America Merrill Lynch researchers has labeled Bitcoin as the “greatest asset price bubbles in history.”
In its note, the bank predicted that a “bubble is already popping,” comparing Bitcoin to various famous financial bubbles that have occurred throughout history: the Mississippi Company and South Sea Company in the 18th century, gold, the U.S. stock market in 1929, and the Dutch tulip bubble in 1637.
BTC/USD Awaits Further Breakout
However, despite the negative market sentiment, Bitcoin could still welcome another breakout once the market begins to recover. Currently, the stock market is on the rebound, and cryptocurrencies could soon follow suit.
As of today, BTC/USD is holding down a support at about $6,800, while a major resistance of $7,000 must be tested in the short run. The next critical point would be $7,200, though as things stand that is unlikely to happen this week. For the rest of today, BTC/USD would likely be in the range of $6,900 to $6,950, and a low volatility is expected.
As for the technicals, BTC/USD is still showing strength for another bull run. The signal line is just about to cross over the MACD line, while the RSI indicator shows that Bitcoin is severely oversold.
Looking at the Technical Indicators:
- Hourly MACD & RSI — Bitcoin is in the bullish zone
- Major Resistance Level — $7,000
- Major Support Level — $6,800
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