- Bitcoin price bulls desire to nurture the uptrend hits a wall pat $7,000 as bearish grip strengthens.
- A bearish flag pattern support break would trigger declines likely to shatter several support areas to test $2,400.
Bitcoin price is trading significantly higher from the recently formed 2020 low at $3,864. However, the king of cryptocurrencies is still in grave danger of declines that could overshoot this year’s low. This is because bearish pressure still hovers and unlikely to be ousted in the next few weeks due to the cloud of fear hovering in the market.
Coronavirus pandemic’s negative impact has touched every financial market. This impact is likely to continue in the coming months while recovery will even talk longer. For this reason, many investors are skeptical about the ongoing recovery as uncertainty in the global economy could see more support shattering downward moves in the near future.
Meanwhile, Bitcoin is trading at $6,815. It has been unable to break the stubborn seller congestion at $7,000, making it a tipping point for both the sellers and the buyers. The longer BTC/USD stays under this zone, the stronger the bears become.
BTC/USD 1-hour chart
The recovery from the recent lows has been sustained in a bearish flag pattern. If the flag support remains intact, Bitcoin would be safe from declines. However, an instance where the flag pattern support gives in, it would be detrimental to Bitcoin with a possible drop to $2,400 as observed by a crypto analyst on Twitter, ‘The Moon.’
Short term technical analysis shows sellers gaining traction. The RSI failed to rise into the overbought but is now retreating towards 50. Support is expected at the 50 SMA and the 100 SMA on the 1-hour chart. Other key levels to keep in mind are $6,800, $6,400 and $6,000.
Bitcoin Key Levels
Spot rate: $6,810
Relative change: 54
Percentage change: 0.80%