Bitcoin prices pushed higher this week, continuing the upward trend that they have been following since roughly mid-August. The digital currency rose to as much as $7,124.81 on Wednesday, August 28, according to the CoinDesk Bitcoin Price Index (BPI). At this point, it was up roughly 6.5% from its price of $6,692.62 at the start of Saturday, additional BPI figures show. The price then pulled back somewhat, trading at $7,042.18 at the time of this writing.
When explaining Bitcoin’s recent rebound, several analysts pointed to key technical indicators, claiming that the digital currency has been pushing higher since testing key support. The cryptocurrency has declined significantly since reaching an all-time high in December, falling from nearly $20,000 to roughly $7,000 at the time of this writing.
“Bitcoin’s upward price movement in the latter half of August bounced off a key support level around $6,000, a level that has proved to be an important baseline since the beginning of January,” said Eric Ervin, CEO of Blockforce Capital. The digital currency “has formed a double bottom pattern around [$6,000],” added David Grodsky, president of CryptoPatterns. As a result, “The bullish trend should see Bitcoin have a day with destiny and retest the key [$7,250] level we have been referencing for months.”
If the digital currency is able to rise above this level on strong volume, it could enjoy further gains, rising to somewhere between $7,600 and $8,000, said Grodsky. However, he cautioned that if Bitcoin prices decline below $6,450, it “would be a red flag that the bullish trend is in jeopardy.”