Bitcoin Key Support Area

Bitcoin found the low at $5777, but it didn’t stay there long. Straight after price jumped u by nearly 10%, hitting $6340 high. Such a massive buy pressure might suggest that this is a very important price for the Bitcoin that could result in a strong fight between bulls and bears.

Fibonacci, applied to the last corrective wave up, shows that 127.2% Fibs at $5946 still plays an important role ans it has acted as the support and resistance already. Looking at the current corrective wave down, BTC/USD found the support at $5992, and rejected it.

Overall, the key support area is located between $5946 and $5992, which makes a $6k a very interesting area, concerting a long term price development of the Bitcoin. At this point there are some clues about the potential price reversal to the upside, but this is only if there will be no daily close below the $5946. And if Bitcoin will break below, further decline will be extremely likely, and price could reach $5k, $4k and even $3k in the mid to long term.

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