Their omnipresent adversaries – the bears – have successfully repelled everything that has been thrown at them during the surge in bullish sentiment these last few weeks. In fact, it would appear they may have even laid out an impressive length of lethal cavalry spikes in front of their robust defences, as most manoeuvres towards the psychological $6k barrier seem to be lain to waste at the $5,900 mark. This line of resistance is proving problematic for the highly anticipated return of BTC to higher ground, along with some of the leading alternative cryptocurrencies. It would be safe to say, though, that those defences appear to be weakening somewhat.
You only need to wind the clock back by two weeks to see a similar scenario.
Back then, the line of resistance was $5,350 and, just like we’re seeing this week, the repeated attempts upon it were pushed back down time after time.
However, after a series of breaches, bitcoin managed to hold its head above the line and crawl its way up to $5,800.
Overstretched, it quickly snapped back below $5,350.
The return to this week’s level was strong and surefooted though, with a swagger and confidence we have rarely witnessed for more than a year.
To some, this cockiness betrays what could be seen as a cruel element of a bear market – it has a predisposition to cause maximum pain after luring victims – siren-like – into a false sense of security before the ground crumbles beneath their feet.
And therein lies another problem – the possibility that the muscle-flexing is actually the real deal.
The trouble is, it’s almost impossible to tell.
Instead, we will need to wait and see what happens during the remainder of this week.
We’ve already seen $5,900 breached a handful of times over the last few days, which matches the pattern from the previous line of resistance.
There is though, something deeply significant about $6,000.
It has been viewed in the past as one of the sturdiest footholds from which building meaningful upwards movement comes from.
Plus, there is common thinking across many analysts who would suggest that a sustained break through this foothold would almost certainly mean that BTC would remain above it for many months.
If that happens, it would effectively bring to end what has been a fairly oppressive bear market, and put bitcoin and no doubt other cryptocurrencies into a bull market once again.
The flipside is, of course, that this is the trap that some observers fear.
In essence, it merely means that the current market simply is not ready to become a bull market.
Everything now hinges on how triumphant the next attempts at breaching $5,900 and then $6,000 are.
In simple terms, successfully holding above $6k returns BTC to a bull market.
If these attempts are unsuccessful, it could herald a slump into consolidation and a drop back to the $5,350 line or lower.