Bitcoin buyers were able to hold off the onslaught of sellers that flushed prices through the crucial $6k level and are now on track for a bit of a bull reversal.
Taking a look at the daily chart above you can see how prices have been pivoting off $6,000 multiple times over the past couple months. This shows a healthy demand at those prices and a good indication that we will move higher in the short term.
Some other important areas to take note of is the $6,800 pivot followed up by the consolidation range above between $7,300 and $7,500.
$6,800 was a pivot back in July and June that held up over multiple attempts to push higher before giving way to a solid move higher. This will likely be a key area for bulls to take out and for bystanders to keep a close eye on because a failure here will put shorts back in the driver seat.
The $7,300 and $7,500 consolidation range will be another spot we will want to watch closely if prices make it that high. These consolidation areas can be considered high traffic areas where there is a lot of accumulation and distribution that can stall prices out. It doesn’t mean prices will reverse but you can expect some consolidation to happen in that range again.
Overall, prices look solid for a short-term reversal off the $6,000 level. Whether or not they will punch through the recent pivot high at $8,500 we will have to wait and see.
