Bitcoin Price Analysis: Bears back in control, looks vulnerable below $6000
- No. 1 coin licks wounds, volatile but within range on Saturday.
- BTC sellers look for entry below the 6000 level.
- Doji candle on daily chart suggests buyers’ exhaustion.
Bitcoin (BTC/USD), the most favorite cryptocurrency, snaps a four-day recovery rally and drops back in the red zone this Saturday. The sellers regained control after the coin failed to extend the recovery above the 6380 barrier. Despite the renewed weakness, the price manages to hold above the 6000 level. On Friday, the first coin fell sharply to sub-5700 levels after having faced rejection just shy of the 7k mark.
At the time of writing, Bitcoin battles 6100, losing 1.50% on the day while down nearly 5.50% over the last 24 hours. Its market capitalization now stands at $111.74 billion or 65.13% of the total market value.
Technical Overview
BTC/USD 15-minutes chart
From a technical perspective, the coin remains trapped in a rectangle formation when tracked on the 15-minutes chart, as sellers await a fresh catalyst to resume the latest bearish momentum. The risks remain tilted to the downside, as the price continues to battle a stack of stiff resistances while it trades below all major Simple Moving Averages (SMA). Meanwhile, the Relative Strength Index (RSI) points south below the midline, as it heads towards the oversold conditions.
To the downside, there are no major support levels aligned once the spot breaches the 6000 psychological mark. Therefore, Friday’s low of 5666.65 will be eyed should the sellers extend control below the 6k level. Traders should sell any upside attempts to 6200 in the near-term, with the major SMAs likely to keep the recovery in check.
BTC/USD technical levels to watch
Author
Dhwani Mehta
FXStreet
Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.
