Bitcoin Price Analysis: Bitcoin is Ready to Test $6,000 Level

Summary:

1. Bitcoin continues to see strong buys following the news that shook out the market just one week ago. The short count continues rise and the bears are now drowning a slow, steady climb to new highs. Once these shorts close, we will very likely see a cascade of buy orders hit the market, known as a “short squeeze.”
2. Now that we’ve climbed out of the “no-mans-land” described over the last few weeks, we are encountering a potential area where supply might start to hit the market. So far, however, we haven’t seen much supply. All we’ve seen is a slow, steady grind that is absorbing every bit of selling pressure.
3. The bitcoin market is currently on the verge of breaking out of a large consolidation pattern known as a “Tilted Flag” and has a staggering price target in $7,000 region. This price target lines up with a deep test of well-known resistance. It’s unclear whether the market will reach its measured move in the $7,000 area, but with all the shorts deeply under water, I definitely wouldn’t rule out that possibility.

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