Bitcoin Price Analysis: BTC/USD Safe Or Rollercoaster To $3,000 Just On A Technical Break?

Bitcoin

Bitcoin Price Analysis: BTC/USD Safe Or Rollercoaster To $3,000 Just On A Technical Break?

  • Bitcoin price recent plunge under $4,000 risked shattering key triangle support.
  • Bitcoin price finds support at $5,000 but must fight to clear the resistance at $6,000 to avert a potential technical crash to $3,000.

Bitcoin price is back to trading above $5,000 following a bearish correction to levels under $4,500. The Asian session on Tuesday is characterized by a renewed upward trend whereby BTC/USD has recovered from intraday lows at $4,936 to highs around $5,426. Bitcoin price is dancing 6.18% higher on the day at $5,295 (market value). In spite of the upward movement, BTC/USD is still facing a bearish trend (short term bias) and high volatility.

BTC/USD daily chart

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

Bitcoin price is trading near the support of a symmetrical triangle. The dip last week to levels around $3,820 put the triangle support to a test. A break under this support line could be catastrophic for BTC/USD as it could trigger another selloff unlikely to be stopped by the 2018 support at $3,150.

However, the ongoing attempt to pull Bitcoin price into recovery could eventually culminate in a significant breakout targeting $14,000 in the coming months, especially after the May 2020 halving. Meanwhile, $5,000 is holding the ground as the key support area. Bitcoin has tested the resistance at $6,000 twice in the last seven days. Therefore, a high concentration of sellers is expected at this zone but if cleared, it could trigger more gains towards the psychological $7,000 level.

The 200-day SMA is still holding the position under the 50-day SMA. If the gap between the two continues to widen in the coming sessions, Bitcoin price is unlikely to stay above $5,000. Instead, a consolidation could take place between $4,500 and $5,000.

Bitcoin Key Levels

Spot rate: $5,295

Relative change: 254

Percentage change: 5%

Volatility: High

Trend: Short term bearish bias

Summary
Bitcoin Price Analysis: BTC/USD Safe Or Rollercoaster To $3,000 Just On A Technical Break?
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Bitcoin Price Analysis: BTC/USD Safe Or Rollercoaster To $3,000 Just On A Technical Break?
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Bitcoin price recent plunge under $4,000 risked shattering key triangle support. Bitcoin price finds support at $5,000 but must fight to clear the resistance at $6,000 to avert a potential technical crash to $3,000.
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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

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John Isige 520 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 @