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Bitcoin price formed a very long, extremely wide red month candle from $10,000 to $4,000.

After such a big drop, this market leader crypto managed to make a decent bounce from the bottom to $6,300 and successfully closed the last week candle of the month at $5,800. One analysis said that this price level becomes an extremely important key to determining the long-term trend of Bitcoin.

Looking back at the “roller coaster” of Bitcoin price in 2020

In 2020, the Bitcoin price has been on a roller coaster ride with a spectacular range of volatility. While many other asset classes have also experienced extreme volatility, and recessions have been predicted on primexbt exchange, even crypto investors and traders are not expecting a such a large amplitude.

At the end of 2019, Bitcoin price showed good support at $6,400 and almost everyone thought that was the bottom. That thinking was reinforced as the price continued to rally more than 60% to over $10,000.

Ethereum and other Altcoins during this time also saw booms, even growing to 100% in some cases. All signs point towards a fresh bull run for Bitcoin ahead of the upcoming drop.

But then the unthinkable happened. A black swan event has arrived, a rapidly spreading pandemic, causing the Bitcoin price to face a record decline, returning to the price that no one expected a day before – $4,000.

See more: Fake QR code generator scams $45,000 worth of Bitcoins

$5,800 becomes the last stop, otherwise Bitcoin price will fall to new lows

This particularly negative move has caused panic in the crypto markets where, from a technical analysis perspective, many long-term trendlines and growth curves have been invalidated by the price action.

However, there is still one positive signal left as the last hope for a return of the “bulls”, which is that Bitcoin has quickly reclaimed the $5,800 level. From there, this price level becomes an important support to decide the future trend.

Why is $5,800 important? According to one analysis, this is the last leg of the bulls, it must hold to sustain Bitcoin’s long-term growth.
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Looking at the pattern of Bitcoin price behavior in the past, throughout late 2017 through the end of 2018, Bitcoin repeatedly approached $5,800, as Bitcoin price failed to hold the $5,800 support. , almost marking a prolonged decline.

$5,800 becomes the last stop, or else Bitcoin price will fall to new lows

Over the weekend, with Bitcoin price dropping from $6,700 to as low as $5,800, investors have managed to push the price back above $6,000 and now $6,300 at the time of this writing.

If the bulls can continue to defend at $5,800, Bitcoin will be able to bounce back strongly. But don’t forget, Coronavirus is still out of control, bears could still have the upper hand once again.