Bitcoin price analysis: BTC/USD spirals down to $6,300 in a fresh crypto bloodbath
|- Bitcoin plunges twice in 24 hours; the bulls are devastated.
- The short-term support at $6,400 must be guarded heavily to avoid declines towards $6,000.
Bitcoin came down crumbling yesterday on rumors that Goldman Sachs has revoked its plans of launching a cryptocurrency desk. The largest crypto by market capitalization plunged twice in 24 hours from trading near $7,400 and found a short-term support at $6,900. There was a slight upside correction as Bitcoin pursued a support above marginally above $7,000. However, the relief was short-lived as the price embarked on another sharp dive downstream below $6,500.
Bitcoin is experiencing an increase in the trading volume amid the widespread crash. The volume currently stands at $6.7 billion up from yesterday’s $5.8 million. On the contrary, the market capitalization has suffered a huge cut from $126 billion to $111 billion in the same period. Significantly, Bitcoin dominance in the market is on the rise from 53.3% on Wednesday 5 to 54.7% at the time press.
Bitcoin price is currently trading slightly above $6,400 following a slight retracement from $6,300 support. Initial resistance will be encountered at $6,500 while the next resistance rests at the 50SMA (15-minutes chart) currently highlighted at $6,590.79 and the next hurdle is at the 100SMA on the same chart currently at $6,829.57. The declines have crippled the buyers, however, they are making attempts to retrace higher. The support at $6,400 needs to guarded heavily while the recent September low at $ 6259.85 is the last resort towards $6,000.
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