Bitcoin [BTC/USD] Technical Analysis: Knife drop urges bears to take power, bulls might see bounce-back

Bitcoin [BTC] has recently seen a drop, breaking the resistance at the $6,220-mark to provide an extremely bearish outlook. However, traders might see an opportunity for a retracement as the coin is yet to recover to its previous support levels.

1-hour:

There is no visible uptrend, as the price has seen a disastrous drop in the near past, with downtrends seen from $6,220 – $6,190 and $6,530 – $6,370 – $6,290. A broken support is present at $6,220, with resistances at $6,320, $6,390, and $6,530.

The MACD is experiencing a bearish crossover due to the recent drop in its price.

The Chaikin Money Flow is demonstrating a short uptrend, with buyers moving back into the market.

The Stochastic indicator is moving into the oversold zone and might see a recovery soon.

1-day:

An uptrend is seen from $6,155 – $6,205, with a downtrend from $9,800 – $6,505 – $6,260. Support levels are visible at $6,145 and $5,850, with resistances set at $6,625, $6,750 and $7,360.

The RSI is plunging towards the oversold zone and might see a recovery upwards.

The Relative Vigor Index is bearish, as seen by the crossover that occurred recently.

The Parabolic SAR is bearish as well, with the dots making themselves present above the hourly candles.

Conclusion

While the price of Bitcoin might see a recovery into the safe zone for the coin, it is more likely that the price will continue to see a stagnation above the $6,200 mark. Selling pressure is keeping the coin down, including negative sentiment about market position among investors.

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