However, losses would have been much bigger had prices not recovered from the six-week lows below $5,900 seen on Aug. 14.
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According to a chart on Coidesk, (prices as per Bitfinex), a long wick (tail) is attached to the current monthly candle, which is widely considered a sign of trend weakness – that is, the bears failed in their attempt to push prices back to the June low of $5,755 and the bulls regained some lost ground.
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Further, the bears have failed three times in the last 10 weeks to keep the cryptocurrency below the support at $6,000. So, it seems safe to say the cryptocurrency has likely charted a long-term bottom around $6,000 and hence prices could revisit July highs above $8,500 in the next month or two.
– Bitcoin’s long-tailed monthly candle indicates the long-term bear market likely bottomed out around $6,000.
– A break above the July high of $8,507 would confirm a bullish reversal.
– A monthly close below $6,000 (major support) would signal a revival of the sell-off from the December high of $20,000.
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