Bitcoin Drops Beneath $7,000 With 5% Price Fall – It Is Likely To Hit $6,000 If We Break THIS Support

Bitcoin-Cash-BCH

  • Bitcoin dropped by a sharp 5% today as the cryptocurrency breaks beneath $7,000 and heads toward $6,800.
  • It has found support at a rising trend line but a break beneath this could cause a severe price capitulation toward $6,000.

Bitcoin dropped by a sharp 5% today as the cryptocurrency falls beneath the $7,000 support level to reach $6,800. If you have been following these articles, you will know that $6,800 is a very important area as it provided strong resistance for the market during March 2020 and, therefore, is expected to provide strong support moving forward.

The coin is now trading at support provided by a rising support trend line, however, a break of this trend line could cause Bitcoin to unwind toward the $6,000.

Bitcoin Price Analysis

BTC/USD – Daily CHART – SHORT TERM

BTC/USD. Source: TradingView

Market Overview

Analyzing the daily chart above, we see that Bitcoin had failed to break above resistance at the $7,200 over the weekend which caused the market to roll over. IT found support at $7,000 yesterday but the sellers continued to push BTC beneath this support today.

We can see that the market is now trading at support provided by a rising support line.

Short term prediction: Neutral/Bearish

Bitcoin is neutral at this moment, however, a break beneath the rising support line and $6,600 would turn us bearish.

The first level of support beneath $6,800 lies at $6,612 (.236 Fib Retracement). Beneath this, added support lies at $6,400, and $6,085 (.382 Fib Retracement). 

On the other side, the first level of resistance lies at $7,000. Above this, resistance is located at $7,200, $7,400, and $7,500.

Key Levels

Support: $6,800, $6,500, $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: $7,000, $7,174, $7,400, $7,500, $7,676, $8,000, $8,073, $8,250, $8,461, $8,672, $8,979, $9,000, $9,100.