Bitcoin Continues To Trade In A Channel Pattern – Forbes

One month ago, I showed how Bitcoin had been trading in a channel pattern as it lost nearly half its value since hitting a high of approximately $14,000 in June. Since then, the cryptocurrency has traded aimlessly as holiday trading volumes remained light. If Bitcoin can stage a convincing, high-volume breakout above this channel in 2020, further gains are likely. If Bitcoin breaks decisively below its $6,000 support level, however, it is likely to test its late-2018/early-2019 lows.

The weekly chart makes it easier to visualize Bitcoin’s $6,000 support level and the channel pattern that has formed since June. $6,000 is an important psychological level to watch because it acted as an important support level in 2018. If Bitcoin is going to launch another bullish move, the $6,000 support would be an important base to do it from.

Investors and traders should continue to watch how Bitcoin acts within its channel and at its important $6,000 support level.