Bitcoin price analysis: BTC/USD holding tight at the edge of a high cliff
|- Bitcoin came close to $7,000 in last week’s bullish trend but the current declines see this level fade in the rear view mirror.
- BTC/USD is down over 2% on Tuesday after trading intraday lows of $6,373.73.
- The bears appear to be exhausted presenting a perfect entry for the bulls around $6,400.
Bitcoin has not been spared from the current bear wave that has led to the trimming and cancellation of the gains last week. The largest crypto by market capitalization is now seeing $7,000 fade away in the rear view mirror, at the same time, $6,300 is approaching at an incredibly high speed. BTC/USD recently corrected higher and brushed shoulders with $6,800. In fact the consolidation that took place over the last weekend has investors believe that it was just a matter of time before it clocked $7,000.
However, the recoil towards $7,000 has been cut short by the bear pressure that started on Monday. Bitcoin smashed through the short-term support at $6,600 while the next possible support target at $6,500 did little to slow down the downward trend. Similarly, the declines that continued into Tuesday have seen the crypto shutter the support at $6,400. Bitcoin price has traded an intraday low of $6,363.73.
Consequently, a slight pullback occurred with the buyers attempting a move above $6,400. Nevertheless, they lack the momentum to maintain the price above this level. Bitcoin has corrected lower over 2% on Tuesday. The trend is generally bearish with the DMI ranging at 55% while the RSI ranging at 30%. Although the bulls have managed to stop the sharp swings to the south, it is important that they find a support above $6,400 in the near-term. Further up, there will be a significant struggle at $6,450 while $6,500 is the ultimate resistance in the medium-term.
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