Bitcoin Price Near to Critical Support at $7,120; Must Hold to Avoid a New Bear Market

A sidewards week for BitcoinUsing the 1 day Bitcoin chart, last week's trading range was expected to be between $7,600 and $9,500 as per the dynamic support and resistance on Bollinger Band indicator.

Is $90,000 Bitcoin really on the cards? Not a week goes by without some outlandish claim that Bitcoin will soar to epic all-time highs in the immediate future, and last week was no exception.

It's worth noting that this particular indicator on the weekly timeframe not only called the bull market in April 2017 when Bitcoin was little over $1,100, but it also crossed short on the 22nd of January in 2018 which signaled the beginning of the bear market.

Bitcoin was consistently overbought in the bull run in 2017, and what is being shown now is a similar position to that of the beginning of 2018 as Bitcoin plunged into the depths of the bear market.

The Bollinger Bands on the Bitcoin daily chart have opened nicely and provided some fresh support and resistance levels to work with.

This is a critical price for Bitcoin to hold, as the ramifications of it breaking this level of support become evident on higher time frames.

Bitcoin needs to remain above the BB moving average at $7,000 to avoid unleashing a new bear market.

Whilst the lower band BB support is $2,500, it's unlikely that price will drop this low as even in the depths of the 2018 bear market Bitcoin rejected levels in the early $3,000 range.

The lower band support of $7,700 has been rejected in recent weeks, which means Bitcoin could begin the trek towards the Bollinger Bands moving average which is at $9,880.

If the unexpected occurs and Bitcoin rallies past $10,672, then the last stop before new yearly highs is $12,000.