Just as we predicted in our previous crypto trading signals, Bitcoin finally dropped below $6800, cutting price all the way to $6600. The sudden price reduction has amounted to -9.10% losses overnight. More bearish reactions could play out for Bitcoin if the market continues to show weakness.
Bitcoin (BTC) Price Analysis: Weekly Chart – Bearish
Key resistance levels: $6800, $7000, $7500
Key support levels: $6400, $6000, $5000
The weekly chart shows a strong bearish setup that could slip Bitcoin’s price to $5000 in the coming weeks, if the market continues to respect the symmetrical triangle pattern that has been forming since March 2017. However, there’s a need for BTC to break minor support of $6400 and $6000, the 2018 low.
If Bitcoin can find support on these price zones, we may see a correction to $7500. But for now, $7000 is close for a retracement move. Meanwhile, BTC is looking for support on the RSI 30 level. Despite the bearish scenario, Bitcoin has remained positive on the weekly MACD indicator to show that there’s still hope for a bullish move.
Bitcoin (BTC) Price Analysis: Daily Chart – Bearish
On the daily chart, Bitcoin is almost testing the channel’s lower boundary following the latest selling pressure in the market. The four weeks of bearishness has made BTC nosedive into the extremely oversold region on the RSI indicator. In the same vein, the MACD has recently produced a bearish cross to show that the bears have taken over the market.
Currently, Bitcoin is trading around $6668 after witnessing a $500 price cut under 24-hours. A further decline could extend sell-off to $6400 and $6000, where the purple support line lies. However, a bounce-back is likely if these support areas can hold. For now, the level of resistance to watch is $6800 and $7000.
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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.