Bitcoin price analysis: BTC/USD engulfed in bear pressure, battered bulls yearn for a catalyst
|- The moving averages are offering resistance to the upside, but critical resistance is at $6,800.
- BTC/USD is supported at $6,650, but $6,200 is a possible breakdown.
Bitcoin price is on the verge of another downside breakout, besides it testing the short-term support level at $6,400. The price has been unable to break above the descending trendline. Moreover, both the 50 SMA and the longer term 100 SMA are offering resistance to the upside.
After the price plummeted from trading above $7,000, it has settled in a ranging channel with the upside limited at $6,655 and supported at $6,218. Technical indicators on the one hour chart are showing signals of continued bearish pressure. The stochastic is at 46% while pointing downwards while the 100 SMA has crossed above the shorter term 50 SMA to signal that the sellers are gaining more control.
The upper region at $6,500 is representing a possible upside breakout, however, the key resistance at $6,800 is also the upper supply zone. On the other hand, BTC/USD is supported at $6,650, but $6,200 is a possible breakdown that could have Bitcoin price testing and event breaking the February lows around $6,000. The trend is bearish in the market and buyers are waiting for a support to recoil the price above $7,000 critical level.
BTC/USD 1-hour chart
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