- Bitcoin finds support above $6,500, but recovery is limited under $6,700.
- Bitcoin still faces a potential spiral to $5,500, especially if $6,500 support broken.
Bitcoin bulls are coming together to defend the support at $6,500 after the bears extended the downside action under $6,600. The weekly low formed around $6,553 marked the end of the recent declines. However, many analysts and cryptocurrency enthusiasts do not believe Bitcoin is fundamentally ready for recovery. Instead, they predict further losses below $6,500 and towards $6,000. Interestingly, an analyst popular on Twitter, Jacob Canfield, says that the largest crypto in the industry downside is headed for $5,500. He wrote:
“I think we could see $5,500 personally, as it is the 78.6% from the swing low to swing high, but we may see a bounce or two in between here and there.”
At the moment, Bitcoin is holding ground at $6,500, following a slight recovery. However, the risk of retesting $6,500 support remains high. The Relative Strength Index (RSI), for instance, is grinding sideways at 30. The horizontal movement comes after a short-lived recovery from 22.15. If the motion continues in the same position, Bitcoin could push for consolidation between $6,600 and $6,700.
BTC/USD 2-hour chart
Unfortunately, bearish pressure still hovers over Bitcoin. Also, the current trend is bearish biased amidst high volatility levels. The 2-hour also reveals the increasing gape between the EMA 50 and EMA100. These moving averages at $6,906 and $7,042, respectively, will stand in the way recovery in the coming sessions. The bulls have the task to ensure the price stays above $6,500, lest another downward spiral shifts focus to $5,500.
Bitcoin Key Levels
Spot rate: $6,646
Daily percentage change:
Trend: Bearish bias
RSI: Ranging, hints continued sideways trading
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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