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

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.

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.

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.

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