Bitcoin Price Analysis: Bearish technical signals point to a test of the 6K area
- Bitcoin trades over 3% lower on Wednesday as sentiment turns sour.
- The next major support level is at 6K and the key moving averages are broken.
BTC/USD 1-hour chart
Bitcoin is looking bearish on Wednesday as the price moved 3% lower after rejecting higher levels. The market bounced off the blue trendline and pushed through the 55 and 200 hourly moving averages. This all points to a very bearish picture on the intraday timeframes. The RSI has also dipped under the 50 mid-line to compound the misery but is in an oversold zone so there could be a short term bounce.
On the downside, the next support zone is at 5853.00. This level was the previous wave low and will make a lower high and lower low wave pattern. The whole crypto market is correcting on the downside at the moment. On the higher timeframes, BTC/USD is also looking bearish with the price trading under the aforementioned moving averages.
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Additional levels
Author
Rajan Dhall, MSTA
FX Daily
Rajan Dhall is an experienced market analyst, who has been trading professionally since 2007 managing various funds producing exceptional returns.
