Good news for those who jumped on the bitcoin bandwagon around the Thanksgiving holidays as family members talked up their new riches from crypto-trading. It seems to have found a bottom right around the levels reached in that holiday week.
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Bitcoin was trading at $9,300 near the end of the trading day on Coinbase Wednesday. Given it was trading around $8,100 on Thanksgiving day, Nov. 23., investors are up 15 percent.
“It’s a good sign for bulls that this level was able to hold earlier this month,” Bespoke Investment Group wrote in a note Wednesday. “Bitcoin seems to have found an initial bottom around $6,000, which is right at the levels it was trading at prior to the post-Thanksgiving parabolic move.”
Source: Bespoke Investment Group
Bitcoin’s gains accelerated to a record high in mid-December above $19,000, but the cryptocurrency then plunged in the last few weeks amid regulatory concerns to below $6,000 last Tuesday.
Bespoke said Wednesday’s price move back above $9,000 “is also bullish because it marks the break above the top of the most recent downtrend channel. It’s important that $9,000 now holds as support going forward.”
The next level to watch from a technical perspective is $11,000, which Bespoke said represents the top of a more extended downward trend and was a level of support and resistance in December and again in mid-January.
“We’d expect it to act as resistance if it is tested again in the near future,” the investment group said, adding that they expect selling pressure to come in at the $11,000 level.
But if $9,000 isn’t able to hold in the coming days/weeks, bitcoin could “easily move right back down to support at $6,000 again.”
The final upside target is the $13,500 to $14,000 range, Bespoke said, which represents a roughly 45 percent increase from Wednesday’s levels.