Bitcoin prices have been fluctuating within a reasonably well-defined range over the last week, trading primarily between $6,000 and $6,600.
The digital currency fell below this range on Tuesday, August 14, reaching as little as $5,900.38 on the CoinDesk Bitcoin Price Index(BPI).
However, Bitcoin quickly bounced back, only staying south of the $6,000 price level for a matter of hours, additional BPI figures show.
At the time of report, Bitcoin was trading at $6,482.92, near the top of its aforementioned weekly range.
[Ed note: Investing in cryptocoins or tokens is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment.]
Since Bitcoin has remained above $6,000 for much of the last week, some analysts took that to mean that the digital currency has been establishing price support.
Charles Hayter, co-founder and CEO of digital currency data platform CryptoCompare, was in that camp.
"Bitcoin has been building a lot of support at this level," he stated.
"There is strong buying pressure at these levels," emphasized Hayter.
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"Bitcoin faces binary scenarios going forward and Sanctuary from the bloodbath in the last six months," he noted.
"Bitcoin is building strength near the $6000 level," he stated.
Going forward, "Bitcoin now faces two critical resistance levels where higher prices would allow bulls to breath much easier," said Pearlstone.
He elaborated:
First is the $6450 (coinbase) level which held for nearly three months earlier this year. Bitcoin is struggling to break out above this resistance level as we write this. Above $6450, $7250 will be the next real challenge which could lead to another run at $8000.
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