Bitcoin Price Analysis: BTC Drops From .5 Fib Retracement Resistance But Remains In Consolidation – Where Will We Rebound?

Bitcoin Tether USDT

  • Bitcoin dropped by a sharp 3.5% over the past 24 hours of trading as the coin failed to break above resistance at $6,540 yesterday.
  • The cryptocurrency is trading in a period of consolidation as it remains within an ascending triangle.

Bitcoin suffered a 3.5% price decline over the past 24 hours of trading as the cryptocurrency failed to come over resistance at $6,542 which caused the coin to roll over and fall again. It is now trading at a price of around $6,210.

Bitcoin is trading within a consolidation pattern known as an ascending triangle and must break above or below this pattern to dictate the next direction of trade.

Bitcoin Price Analysis

BTC/USD – Daily CHART – SHORT TERM

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BTC/USD. Source: TradingView

Market Overview

Taking a look at the daily chart above, we can clearly see Bitcoin meeting resistance at the bearish .5 Fibonacci Retracement level yesterday priced at $6,542. This Fib Retracement is measured from the March high to the March low.

We can also see Bitcoin clearly trading within the ascending triangle as it struggled to break above resistance at $6,800.

Short term prediction: NEUTRAL

As Bitcoin trades within the triangle, we can consider the market to be neutral. If it breaks beneath the triangle then it would be bearish. 

Toward the downside, the first level of support lies at $6,100 which is provided by a short term .382 Fib Retracement. This is then followed with support at the lower boundary of the triangle and at $6,000.

Beneath $6,000, support lies at $5,785 (.5 Fib Retracement), $5,467 (.618 Fib Retracement), and $5,200.

On the other side, resistance lies at $6,542, $6,800, $7,000, and $7,174.

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.