Finally, Bitcoin has cleared the $7300 low few hours ago and now we are facing the $7000 support, which is most likely to break soon. The bears are still dominant in the market and due to that, we can expect more colossal drop in the next three few hours. Despite the monthly dip, BTC dominance remains above 66% but the entire crypto market has witnessed a massive decline.
Bitcoin (BTC) Price Analysis: Daily Chart – Bearish
Key resistance levels: $7300, $7500
Key support levels: $6800, $6500
Following the weekly price drop, Bitcoin is now trading close to the channel’s lower boundary that has been forming since June. The sellers are still much around as Bitcoin is likely to bottom at $6500. But currently, the market is sitting on $6800 support after plummeting all the way from $7700 today. The recent surge has led the technical indicators at their lowest levels, keeping traders abreast more potential sell-off in the market.
However, Bitcoin may climb back if the price keeps respecting the five months descending channel. A retracement level lies for Bitcoin at $7300 and $7500 resistance. The bearish scenario might get worse if the market slips beneath the channel. For now, Bitcoin is gathering momentum for the next colossal drop which could play out before the close the US session.
Bitcoin (BTC) Price Analysis: 15MChart – Bearish
From the $6800 low, Bitcoin has seen a little gain to where it’s currently trading at $7179. The retracement might reach $7350 resistance if the bulls can push the market further. Even though buying pressure increase, there’s a high probability for a bearish take-over at the pennant resistance (white) before witnessing a massive decline to $7000, $6800 and beyond.
A successful break above the white resistance line may see Bitcoin through to $7500 and $7700 resistance zones, where BTC records the daily high. A further buy could lead to more bullish sentiment. With the current market condition, there’s a more fall ahead for Bitcoin. As we can see, the RSI is now facing resistance at 50 levels after a slow positive rebound. However, selling could get severe if the MACD continues to turn away at the zero levels.
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Michael Fasogbon is a professional Forex trader and cryptocurrency technical analyst with over five years of trading experience. Years back, he became passionate about blockchain technology and cryptocurrency through his sister and has since been following the market wave.