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

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

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.