BTC/USD Bulls holding tight above $6,550

Story by: John Isige

Bitcoin price broke below the bullish flag pattern I explored in yesterday’s price analysis. BTC/USD closed the session on Tuesday at $6,769.94 followed by a sharp descent during the Asian trading hours on Wednesday. The descent is likely a reaction to the hacking that took place on South Korea’s Bithumb exchange where hackers made away with at least $31 million in cryptos. The exchange has, however, said that they will compensate the customers for the lost funds.

In other news, the CEO of one of the oldest cryptocurrency exchanges, Coinbase has encouraged the employees not to worry about the falling Bitcoin price. Brian Armstrong told the staff that the down cycle was bound to come, however, he reassures them that this is the time to go above the hype brought by surging prices. He was also talking to the larger crypto community when he wrote on Twitter:

“After many years of this, I’ve come to enjoy the down cycles in crypto prices more. It gets rid of the people who are in it for the wrong reasons, and it gives us an opportunity to keep making progress while everyone else gets distracted.” Armstrong added in another tweet, “I want to encourage you all to ignore the price of crypto and the headlines which will inevitably start to come up. Our job is to rise above that, finding our own intrinsic source of motivation, to come in and do our best work, regardless of what other people think.”

Bitcoin price analysis

Bitcoin price is currently trading between the support and resistance highlighted by the moving averages. For instance, the 100 SMA is limiting gains slightly below $6,650 while the short-term 50 SMA is supporting the price slightly below $6,600. The largest crypto is correcting lower mid-week although we saw a considerable bullish trend yesterday that spiked above $6,750, tested but did not break the key resistance at $6,800. There is a bullish trend forming, besides the buyers are gathering strength to break above $6,650 before attacking the critical level at $6,700. The price is supported at $6,600, although the lower demand zone at $6,450 is still within reach as long as Bitcoin is trading below $7,000

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