Bitcoin Price Analysis: BTC Drops Beneath Rising Price Channel. Are We Now Bearish?

Bitcoin BTC Crypto
Image Courtesy of Reuters/Benoit Tessier

Bitcoin Price Analysis: BTC Drops Beneath Rising Price Channel. Are We Now Bearish?

  • Bitcoin saw a 2% price decline as the cryptocurrency drops toward the $6,100 level.
  • This latest price drop has now caused Bitcoin to drop beneath the previous ascending price channel as the bearish case increases.

Bitcoin continued with its rollover today as it dropped a further 2% from the opening price to reach the $6,131 level. The cryptocurrency was previously struggling with resistance at $6,800 which caused it to reverse and drop over the past 3-days.

The cryptocurrency has now dropped beneath the previous rising price channel as the bearish case increases. It does look like Bitcoin might be headed back toward $5,000 over the next 2-weeks of trading if we break beneath $6,000 over the following few days.

Bitcoin Price Analysis

BTC/USD – Daily CHART – SHORT TERM

BTC/USD. Source: TradingView

Market Overview

Taking a look at the daily chart above, we can clearly see Bitcoin struggling at the $6,800 level which caused it to roll over and drop. It attempted to find support at the lower boundary of the price channel yesterday but failed to hold this level and dropped beneath this support in today’s trading session.

The cryptocurrency is now trading at short term support provided by a .382 Fibonacci Retracement level at $6,106 but a drop beneath this is likely to send the market much further lower.

Short term prediction: NEUTRAL/BEARISH

Bitcoin remains neutral but is in extreme danger of turning bearish if we break beneath $6,100. If this is the case, we can expect support toward the downside at $6,000, $5,786 (short term .5 Fib Retracement), $5,636 (downside 1.414 Fib Extension), and $5,467 (.618 Fib Retracement). 

On the other side, resistance lies at $6,400, $6,542 (bearish .5 Fib Retracement), $6,800, and $7,000.

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.

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Bitcoin Price Analysis: BTC Drops Beneath Rising Price Channel. Are We Now Bearish?
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Bitcoin Price Analysis: BTC Drops Beneath Rising Price Channel. Are We Now Bearish?
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Bitcoin saw a 2% price decline as the cryptocurrency drops toward the $6,100 level. This latest price drop has now caused Bitcoin to drop beneath the previous ascending price channel as the bearish case increases.
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Author: Yaz Sheikh

Yaz is a cryptocurrency technical analyst and has been actively trading financial markets for over 7years, with 4 years of crypto experience. He is an Economics graduate who has taken a keen interest on the future potentials of blockchain in the financial industry. Aside from cryptocurrency and trading Yaz enjoys spending his time watching his favourite football team (Liverpool F.C.) compete as well as keeping up-to-date with the UFC. Follow him at @TcmYaz.

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Yaz Sheikh 182 Articles

Yaz is a cryptocurrency technical analyst and has been actively trading financial markets for over 7years, with 4 years of crypto experience. He is an Economics graduate who has taken a keen interest on the future potentials of blockchain in the financial industry. Aside from cryptocurrency and trading Yaz enjoys spending his time watching his favourite football team (Liverpool F.C.) compete as well as keeping up-to-date with the UFC. Follow him at @TcmYaz.

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