Recently, Bitcoin’s bulls and bears appear to remain stagnant, yet a significant shift on either side will influence the ways an increase will progress.
In the past few days, the cryptocurrency was strongly trading above $7,100 thanks to the predictions made by major players in Wall Street who are expected to invest in the market. Sadly, Bitcoin prices have dropped to a low of $6,611 suddenly due to a long string of woes.
Bitcoin was trading at $6,730 on Bitfinex at the time of writing which is about a 6.3 percent decline from its previous high of $7,189 at the beginning of this week. Regardless of the decline, the immediate outlook seems normal.
Considering the recent drop in March during which it reached a high of $9,050, it looks like the narrow price gap is a bearish trend. Therefore a recovery will boost the sell-off from $9,050 and make room for a decline towards $5,950.
Earlier this week, Bitcoin was able to create a bearish outside-day candle, notwithstanding the undoing of the long position discussed above.
Based on the candlestick trend, it means that it is possible for the cryptocurrency break through the narrowing price range to the decline and spread losses towards $6,000-$5,950.
However, if things go in the other direction, the chance of a decline wedge reversal is possible.
Therefore, investors will be pleased to see a recovery above $7,510 prior to a bullish reversal.