Bitcoin (BTC) bounces of $6100 level, what’s next?

Bitcoin futures on Deribit exchange are currently trading at 6250 USD, having bounced off the 6100 level within the past 24-hours. The pullback from the 7500 USD level began on June 10th and has seen BTC fall around 1500 USD. For long-term hodlers, is this a good time to accumulate bitcoin at a decent price? Or is a lengthy consolidation period upon us around the 6000-6500 USD price points.

Looking at price action year to date, the BTC price has seen a low of 5957 USD, which occurred on February 2nd, 2018. If selling does persist, this could be another good entry level for buyers of the cryptocurrency. After this level was hit though, bitcoin rallied hard, almost doubling to 11700 USD on the Deribit futures market.

The high for this year was this 11700 USD level which occurred in late February and again in early March. If history repeats itself, patient buyers could be rewarded handsomely if we are to see bullish price action signs pick up. Buying around today’s current price level of 6000 USD could see a doubling in price in the near future.

A bearish scenario looks exhausted, but if selling continues, the next support level comes in around the 5200 USD price level. The 5200 USD level was the late 2017 price for a prolonged consolidation period before the BTC price went parabolic into the new year. After launching up from this support level, BTC advanced to reach an all-time high around 20,000 USD on December 20th, 2017.

Between the 5200 USD and current 6000 USD price points look like good entry points to accumulate more coins or make some strategic trades. Being involved with bitcoin, holding, being aggressive buyers or sellers depends on your situation and strategy, but whenever the bitcoin price has a healthy pullback, it is smart to evaluate your options and reconsider your strategy.

If you are looking for daily bitcoin strategies, email us at bitcoin@cryptoninjas.net, also see the BTC futures market on Deribit.