A fresh breakout by Bitcoin Monday may yet prove temporary as a Cointelegraph Market analyst warns of major downside potential.
Bitcoin (BTC) finally retook $7,000 on April 6 after days of posturing culminated in a sudden surge as the new week began.
Cryptocurrency market daily overview. Source: Coin360
BTC price exits $6K… again
Data from Coin360 and Cointelegraph Markets showed BTC/USD exiting the $6,000 range in a snap move which took markets to three-day highs of $7,080.
While holding at press time, it remained to be seen whether Bitcoin could sustain support at $7,000, or whether the latest push would copy others from last week in fizzling in a matter of hours.
Bitcoin 1-day price chart. Source: Coin360
The impetus for Bitcoin’s newfound strength was not immediately clear. On Sunday, traditional markets futures had risen sharply, while analysts warned that fresh uncertainty about oil production could spark a heavy reversal of last week’s gains in the sector.
Market uncertainty has increasingly benefitted Bitcoin in recent weeks. As Cointelegraph reported, the cryptocurrency managed to maintain roughly 70% gains versus its deep low of $3,700 from March 12.
Van de Poppe: $7K must become support
On Monday, BTC/USD was at a critical stage for Cointelegraph Markets analyst Michaël van de Poppe. If a zone between $6,966 and $7,217 could become firm support, he argued on Sunday evening, it would be a key factor in changing his otherwise bearish position.
“If not, I’m still aiming to see $5,200 and perhaps lower. Rising wedge with decreasing volume going into resistance in a downtrend.”
A survey by van de Poppe showed that the majority of social media followers still favored Bitcoin hitting $6,400 before $7,600.
Last week, meanwhile, veteran trader Tone Vays said that he remained confident about more significant Bitcoin price upside hitting at some point in April.