Bitcoin Price Analysis: BTC/USD Rejected At $7,000; Is $5,000 The Next Rendezvous?

Bitcoin

Bitcoin Price Analysis: BTC/USD Rejected At $7,000; Is $5,000 The Next Rendezvous?

  • Bitcoin price recovery from the weekend dip under $6,000 supported by the 50 SMA.
  • A reversal above $6,000 is necessary to avert a possible dip to $5,000 in the short term.

Bitcoin price recent bullish action tested the critical $7,000 level. However, the breakout above this zone failed to materialized leaving the largest cryptocurrency vulnerable to losses. The weekend session has been dominated by the selling activities with BTC/USD forced under $6,000.

At the time of writing BTC/USD is trading at $5,972after a 2.36% growth on the day. The Asian session on Monday has been characterized by subtle gains and an improving technical picture. If the technical levels remain intact and buyer interest on BTC increased, an extended bullish leg above $6,000 would not take long.

BTC/USD 4-hour chart

BTC/USD price chart
BTC/USD price chart by Tradingview

Short term analysis shows that Bitcoin price is still in a bullish phase despite the rejection at $7,000. For instance, the RSI has changed the direction upwards after testing the level at 40. BTC/US is also trading above the 50 SMA in the 4-hour range amid increasing volume. A step above $6,000 would encourage more buyers to join the market as long as the focus stays on $7,000 and beyond.

However, if the resistance at $6,000 is not cleared soon, investors (especially those who bought during the dip under $4,000) are likely to sell. This would eventually push Bitcoin’s price to $5,000. A dip of this magnitude would be a setback but again it would serve as a great way to improve Bitcoin’s fundamental as well as technical levels.

Bitcoin Key Levels

Spot rate: $5,972

Relative change: 153

Percentage change: 2.64%

Volatility: Expanding

Trend: Short term bullish bias

 

 

Summary
Bitcoin Price Analysis: BTC/USD Rejected At $7,000; Is $5,000 The Next Rendezvous?
Article Name
Bitcoin Price Analysis: BTC/USD Rejected At $7,000; Is $5,000 The Next Rendezvous?
Description
Bitcoin price recovery from the weekend dip under $6,000 supported by the 50 SMA. A reversal above $6,000 is necessary to avert a possible dip to $5,000 in the short term.
Author
Publisher Name
Coingape
Publisher Logo
Coingape is committed to following the highest standards of journalism, and therefore, it abides by a strict editorial policy. While CoinGape takes all the measures to ensure that the facts presented in its news articles are accurate.
Disclaimer The views, opinions, positions or strategies expressed by the authors and those providing comments are theirs alone, and do not necessarily reflect the views, opinions, positions or strategies of CoinGape. Do your market research before investing in cryptocurrencies. The author or publication does not hold any responsibility for your personal financial loss.
Author: John Isige

John is a talented writer with over two years of experience actively contributing to the cryptocurrency industry by providing credible, interesting and easy to read the content. His main focus is on cryptocurrency price analysis and industry news coverage. Lets follow him on Twitter at @jjisige

Post your comment...
John Isige 451 Articles

John is a talented writer with over two years of experience actively contributing to the cryptocurrency industry by providing credible, interesting and easy to read the content. His main focus is on cryptocurrency price analysis and industry news coverage. Lets follow him on Twitter at @jjisige

Follow John @