Bitcoin (BTC) Makes a Sharp Drop, Hovers above $6,000 Support Level

Bitcoin (BTC) Makes a Sharp Drop, Hovers above $6,000 Support Level

Key Resistance Zones: $10,000, $11,000, $12,000
Key Support Zones: $7, 000, $6, 000, $5,000

BTC/USD Long-term Trend: Bearish
BTC/USD pair has been in consolidation above $7,800 since March 9. Today, the price tested a high of $8,000 and was resisted. Bitcoin encountered a sharp drop as the price fell from a high of $8000 to a low above $6,000. Presently, the price is fluctuating above $6,000. The current downward move has reached the previous lows of June 2018. These are historical price levels of which the current price will respect or break the historical price levels.

BTC/USD – Daily Chart

Daily Chart Indicators Reading:
First and foremost, price has broken the support line of the descending channel and closed below it. It is unclear whether the downward move has subsided. Bitcoin has dropped to a low above $6,000 from the high of $8000. This drop has made the coin to fall into the oversold region. Buyers are likely to emerge in the oversold region of the market.

BTC/USD Medium-term Trend: Bearish
On the 4- hour chart, Bitcoin fell to the low of $7,700 and resume consolidation. Today, the consolidation has been broken. The bears have the upper hand. It was earlier anticipated that BTC will bounce and rally above $8,400. Then the bears will take control and push the market to a low of $7,000.

BTC/USD – 4 Hour Chart

4-hour Chart Indicators Reading
The Relative Strength Index level 15. This means that it is below the centerline 50 and the coin is likely to fall. The 21-day and 50-day SMAs are pointing southward indicating the downtrend. The market has reached the level of a buy signal.

General Outlook for Bitcoin (BTC)
Bitcoin has finally fallen to its low. At the time of writing, the price is still fluctuating above $6,000. Last year, 2019, the market reached a low of $6,600 before the resumption of an uptrend. Traders are to look out for buy setups as the market reaches the oversold region.

Instrument: BTC/USD
Order: Buy
Entry price: $6089
Stop: $5,700
Target: $9,000

Note: Learn2Trade.com is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing results

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Author : Azeez Mustapha

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Azeez Mustapha is an experienced author, trader, markets analyst, signals strategist, and funds-manager.