- Bitcoin risks sliding below $5,200 key level maid growing bearish momentum across the market.
- A correction to $5,000 will be a necessary evil that is likely to create more demand.
Bitcoin is sitting above the 61.8% Fib retracement level between the last upswing at $5,352.05 and a downswing of $3,868.19 following the last week’s surge above $5,000. Bitcoin surprise move above the critical $5,200 before coming to halt at $5,352.05. For at least a week now the buyers have been in control maintaining the uptrend above the trendline.
Bitcoin failed to sustain the trend above the high formed at $5,352.05. A retracement from the highs was supported at the 61.8% Fib level allowing bulls to regain control. Another breakout made it above $5,200 but turned bearish on touching $5,300. BTC/USD has since the opening session today been trending lower towards $5,200 short-term support.
According to the indicators on the 4-hour chart, the largest asset is on the verge of a flash drop that could spark declines below $5,000. The stochastic is heading south at 55 after it was retracted from the levels above 80.00.
Key Technical Indicators:
Support 1: $5,200
Support 2: $5,200
Support 3: 61.8% Fib level close to $4,750
100 SMA 4-hour: $4,500
200 SMA 4-hour: $4,222.23 (coincides with the 38.2% Fib level).
Resistance 1: $5,300
Resistance 2: $5,352.05.
Stochastic: 55.00 (trending lower)
Prediction: If Bitcoin price slides below the trendline support, a flash drop to areas around $5,000 will follow. At this level, fresh demand will be created as buyers find better buying positions. BTC/USD will spike up again and this time it will be unstoppable towards $5,400.