- Bitcoin dropped by a total of 10% over the past 24 hours as it pushes back beneath $6,000.
- The cryptocurrency is currently trading above a short term trend line but if it breaks we might see Bitcoin heading beneath $4,800.
Well, it seems that the bears are back in town as Bitcoin drops by a total of 10% today as it penetrates back beneath the $6,000 level once again. The cryptocurrency was looking like it was on the road to recovery over the past couple of days, however, it was unable to overcome resistance at $7,170 which caused it to roll over and fall.
It is currently trading above a short term trend line but if it breaks we might see Bitcoin returning beneath $5,000 and possibly make some fresh lows for March.
Bitcoin Price Analysis
BTC/USD – 4HR CHART – SHORT TERM
Taking a look at the 4HR chart above we can clearly see Bitcoin running into the resistance at $7,174 provided by a bearish .618 Fib Retracement. It was really unable to climb above $6,700 which caused it to roll over and drop back into previous resistance (now support) provided by a bearish .382 Fib Retracement priced at $5,911.
Short term prediction: NEUTRAL/BEARISH
Bitcoin remains neutral but a break of the trend line is likely to put it bearish again.
If the sellers push beneath $5,911 and the rising trend line, the first level of support is located at $5,786 (short term .5 Fib Retracement). This is then followed by support at $5,550, $5,467 (short term .618 Fib Retracement), $5,200, and $5,000.
If the sellers continue beneath $5,000, support lies at $4,800, $4,577 (downside 1.272 Fib Extension), $4,139, and $4,000.
On the other hand, if we climb above $6,000, resistance lies at $6,174, $6,400, $6,542, $6,700, and $7,000.
Support: $5,911, $5,786, $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: $6,000, $6,174, $6,542, $6,700, $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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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.