Why $8.1K Will Be a Key Level for Bitcoin Price for the Next 6 Months

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Since August of 2019, $10,500 is the price point at which Bitcoin has been unable to close above on the weekly chart and it is generally a level Bitcoin has struggled to sustain.

The VPVR indicator shows volume traded by price rather than by day and is useful to see which price levels attract the most interest in the market.

Volume has traded with a large bias below $9,700 since 2019 and little volume traded above this level, meaning Bitcoin is at the top of the trading range of interest.

Below $9,700 is the vast majority of price history meaning Bitcoin should find support if prices were to push lower.

The 20-week moving average has often been a clear line in the sand between Bitcoin being in a bull and bear market, but should that fail there is the 100-WMA at $7,200 and the 200-WMA at $5,900, which are also both areas of strong price history.

The price is also showing a false breakout and rejection at the key $10,400 level, which Bitcoin has struggled with in the past three quarterly periods.

The consistent buying volume led to a breakout in the OBV, a volume indicator that adds or subtracts daily volume based on price movement and therefore, emphasizes the effect volume has upon price.

General market sentimentThe CME futures chart shows a slightly different chart to that of the Bitcoin chart with a very clear divergence between volume and price.

Volume confirmation and support at $10,500 should see Bitcoin move into an area where volatility will pick up and bulls will then set $12,000 as their next target.

The volume does appear to be controlled by the bears around the $10,000 level, and the current bullish responses have not been sufficient enough to break out of the OBV.Bitcoin price price may need to go lower to find more consistent bullish buying interest, with the 20-week moving average and the pivot around the $8,100 area likely to play an important role in determining the price over the next six months.

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