Bitcoin has been rising since this April 2nd when it went from four to five thousand within a single hour. After that, the asset spent lots of time trading sideways, but it managed to stay above 5k all the time. Then it arrived, slowly but surely, to the 8k level (a few days ago finally) and a lot of people started to scratch their heads because, after 8k comes 8.400,00 which is an important psychological milestone for Bitcoin traders.
In this article, we will tell you why this 8,4k price level is so important and why overcoming it is such a bullish sign. Succeeding in the cryptocurrency market (in any market, for that matter) is much more likely for investors who observe the state of the market and understand when and why the momentous events happen.
The 8400 Bitcoin Level
As you surely know, 2018 was a disastrous year for Bitcoin and the other cryptocurrencies. That fateful year saw BTC trading sideways around this 6.4k and then 8.4 level. For months the currency managed to stay above, so it (especially 6.4k level) ended up being the most critical support level for the year at all levels (daily, weekly, and monthly).
In other words, while things were clearly not great, as long as that support level wasn’t breached, they couldn’t be too bad. So the price stayed there for ages until it went down. That was when it fell under USD 4.000,00. And things were indeed too bad at last.
That behavior is the kind of thing that leaves a scar of sorts in the minds of traders. Keep in mind that technical market analysis is not scientific at all, as any specialist will tell you. It doesn’t matter how many mathematical tools it seems to use; the fact remains that some numbers and events (especially round numbers) make even the most seasoned traders act in irrational ways.
The recent dance around 8k
A few days ago, the Bitcoin price started to test the 8k levels. That reminded everybody about the 8.4k level automatically, because it had been such a hard support level to break. Part of the technical analysis lore is that yesterday’s support level is today’s resistance level and vice-versa. So as the price came nearer to 6.4k, the thought materialized that, as a resistance level, it would be every bit as hard to break as it was last year when it had the reverse role.
The approach to 8k, and then to 8.4k was slow indeed for a short time. But we all know what happened next. Bitcoin broke both resistance levels, and it’s been soaring since then.
Breaking the $8.4k level on its way up is one of the most bullish moves BTC has achieved in its decade-long history. It means that the market trend is decidedly bullish and that the crypto summer is finally here, after those hellish 18 months of red numbers and sideways trading.
As we finish writing this article Bitcoin has gained over 50% in the last 14 days, and it’s trading at $7988, so it keeps going up, and chances are it will keep increasing in value for some time to come.
Disclaimer: The presented information is subjected to market condition and may include the very own opinion of the author. Please do your ‘very own’ market research before making any investment in cryptocurrencies. Neither the writer nor the publication (TronWeekly.com) holds any responsibility for your financial loss.