- Bitcoin price recent plunge under $4,000 risked shattering key triangle support.
- Bitcoin price finds support at $5,000 but must fight to clear the resistance at $6,000 to avert a potential technical crash to $3,000.
Bitcoin price is back to trading above $5,000 following a bearish correction to levels under $4,500. The Asian session on Tuesday is characterized by a renewed upward trend whereby BTC/USD has recovered from intraday lows at $4,936 to highs around $5,426. Bitcoin price is dancing 6.18% higher on the day at $5,295 (market value). In spite of the upward movement, BTC/USD is still facing a bearish trend (short term bias) and high volatility.
BTC/USD daily chart
Bitcoin price is trading near the support of a symmetrical triangle. The dip last week to levels around $3,820 put the triangle support to a test. A break under this support line could be catastrophic for BTC/USD as it could trigger another selloff unlikely to be stopped by the 2018 support at $3,150.
However, the ongoing attempt to pull Bitcoin price into recovery could eventually culminate in a significant breakout targeting $14,000 in the coming months, especially after the May 2020 halving. Meanwhile, $5,000 is holding the ground as the key support area. Bitcoin has tested the resistance at $6,000 twice in the last seven days. Therefore, a high concentration of sellers is expected at this zone but if cleared, it could trigger more gains towards the psychological $7,000 level.
The 200-day SMA is still holding the position under the 50-day SMA. If the gap between the two continues to widen in the coming sessions, Bitcoin price is unlikely to stay above $5,000. Instead, a consolidation could take place between $4,500 and $5,000.
Bitcoin Key Levels
Spot rate: $5,295
Relative change: 254
Percentage change: 5%
Trend: Short term bearish bias