Bitcoin Price Analysis: Bitcoin Falls Under $7000 After Losing 5% Overnight, Will It Get Severe?

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21 April 2020 | Updated: 21 April 2020

T• Bitcoin falls below $7000 following a 5% drops over the past hours
• The trend is still looking bullish but the bears may take over if the price drops below $6600

Bitcoin lost 5% of its value to $6775 under 24-hours, making the largest cryptocurrency to witness a mild bearish on the intra-day trading. Notwithstanding, the bullish trend remains valid on a 4-hours descending channel. However, Bitcoin may completely lose momentum if the price drops below $6600 – $6500 support area.

Key resistance levels: $7000, $7300, $7450
Key support levels: $6800, $6600, $6400

Bitcoin (BTC) Price Analysis: 4H Chart – Bullish

Bitcoin lost $7000 level again after breaking to $7300 last week. Meanwhile, the latest price drop has brought trading back around a controversial area of $6800. BTC bears appeared to be back in the market, though they need to break-down the four weeks ascending channel before we can confirm a strong bearish trend.

BTCUSD, 4H Chart – April 21

However, there’s hope for the bulls if the channel’s support – $6800 can hold. Even if the price drops below this support, a rebound is likely at $6600 (which is the bulls’ last defence line), marked grey on the 4-hours chart. A dip below this support would trigger a severe loss to $6000 but the closest support is $6400. From the upside, the major resistance to watch is $7000, $7300 and $7450 in case of a recovery.

Bitcoin (BTC) Price Analysis: Hourly Chart – Bearish

Despite the latest drops from $7200 to $6775 overnight, Bitcoin’s bullish trajectory still looks valid on the hourly chart. Technically, this move is considered as a pullback to the April 16 breakout above an orange regression line. The only condition for bearish is if the price slips below this orange line.

BTCUSD, Hourly Chart – April 21

Bitcoin currently recovered a bit back to $6882. Buying above $7000 could allow Bitcoin to reclaim $7300 – the weekly resistance. Above this resistance lies the monthly high of $7450. In case Bitcoin drops lower, $6700 and $6600 would be the next support area to watch. A drive below $6500 would confirm a strong bearish trend for Bitcoin on a short-term.

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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Michael Fasogbon

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.