Over the past 24 hours, Bitcoin price has dropped to a two-week low of $ 6,468. The slight correction has come right at the close of the day and although the price traded mostly in the range of $ 6,780 - $ 6,680, the price action is not surprising since the pattern of lower lows has been takes place since 10/4.
Traders have been expecting a strong directional move since the price was rejected in the range of $ 7,400 on April 7, 8 and 9, and another signal is the daily trading volume declining.
Price has also struggled to rise above the 50-day MA ($ 7,000) and below this level, $ 6,900 is an exceptionally difficult level to overcome.
Daily USDT BTC chart. Source: TradingView
On the daily time frame, there is a large volume button that extends from $ 6,600 to $ 6,850 and the area has been acting as a support since April 2. But yesterday, a drop to $ 6,468 prompted traders to target $ 6,400 and $ 6,200.
Exploding to $ 7,250 or sliding to $ 5,800?
A break below the $ 6,200 support level increases the chances of a Bitcoin price retesting the regional support of $ 5,800- $ 5,400.
BTCT USD 4 hour chart. Source: TradingView
On a shorter time frame, it can be seen that prices have fallen below the moving averages of the Bollinger Bands indicator. But while losing support of $ 6,650, the most recent candle and an increase in buying volume shows that traders have bought dips. A 4-hour close above $ 6,763 is needed to arouse every hope that Bitcoin can reclaim the $ 7,000 area.
The long-term downtrend line from the February 13 high ($ 10,508) remains looming above $ 6,720 and beyond the 50 MA, the Bitcoin price has struggled to sustain above the trend line.
In the end, not much has changed with the market structure. The checkpoint is $ 7,300 and the price has to overcome resistance at $ 6,900- $ 7,260 to rally to $ 8,000 at the 61.8% Fib retracement level.
You can see the price of Bitcoin here.
Disclaimer: This is not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.
According to Cointelegraph
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