Bitcoin Price Analysis: BTC In Danger Of Dropping From Rising Price Channel As Selling Momentum Increases

Bitcoin BTC

  • Bitcoin saw a 6% price decline over the past 24 hours of trading as it currently trades at $6,290. 
  • The cryptocurrency has been trading within an ascending price channel since the March collapse but is in danger of dropping beneath this now.

Bitcoin rolled over and dropped by 6% today after failing to break above the $6,800 resistance level for the past 4-days straight. The cryptocurrency had seen some promising positive growth over the past week but is in danger of turning bearish again if it falls beneath the current rising price channel.

A drop beneath the channel could see Bitcoin breaking $6,000 and heading back toward $5,000 if the selling momentum increases. The RSI failed to break above the 50 level which shows that the sellers are still not ready to give up the control of the market momentum just yet.

Bitcoin Price Analysis

BTC/USD – Daily CHART – SHORT TERM

BTC/USD. Source: TradingView

Market Overview

Analyzing the daily chart above, we can clearly see Bitcoin struggling at the $6,800 level over the past 4-days of trading which caused the market to roll over and fall. It dropped as low as $6,100 but managed to rebound at the support provided by a short term .382 Fibonacci Retracement level here and climb back into the previous ascending price channel.

Short term prediction: NEUTRAL

Bitcoin still remains neutral at this moment in the short term, however, if it closes beneath this rising price channel today we can expect the short term trend to turn bearish.

If the sellers do break beneath the channel, the first level of support lies at $6,100 where lies the short term .382 Fib Retracement. Beneath this, support lies at $6,000, $5,786 (.5 Fib Retracement), $5,636 (downside 1.414 Fib Extension), and $5,467 (.618 Fib Retracement).

On the other side, resistance lies at $6,542 (bearish .5 Fib Retracement), $6,800, and $7,000.

Key Levels

Support: $6,100,, $6,000, $5,911, $5,786, $5,636, $5,600, $5,500, $5,467 $5,200, $5,000, $4,800, $4,672, $4,577, $4,139, $4,000, $3,912, $3,500, $3,436.

Resistance: $6,542, $6,800, $7,000, $7,174, $7,200, $7,270, $7,500, $7,676, $8,000, $8,073, $8,250, $8,461, $8,672, $8,979, $9,000, $9,100.