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

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