Bitcoin price analysis: BTC/USD breaks free from the range, triggers a trading limit on CME

  • Bitcoin started moving after a prolonged period of consolidation.
  • Bitcoin futures collapsed, triggering trading limit.
  • A recovery above $6,000 is needed to mitigate the immediate bearish pressure.

BTC/USD is trading at $5,548, down over 10% since this time on Wednesday. The largest digital coin has experienced a strong sell-off triggered by a combination of technical factors intensified by FUD (Fear, Uncertainty, and Doubt). 

Bitcoin touched $5,312 low on Wednesday before the technical recovery threw it up to the current levels. 

Bitcoin futures on CME reached a trading limit, tumbling down 13% on Wednesday. CME's spokesman explained that the 2-minute pause was initiated before 2 p.m. Eastern Time. A 20% collapse would have led to a hard limit, however, it did not happen.

"From a technical analysis standpoint, as bitcoin's price falls below $6,000 we're seeing liquidation: stop-loss orders automatically going into effect and/or people trying to play the breakout," Mati Greenspan, a senior market analyst at eToro commented.

Bitcoin's technical picture

From the technical point of view, Bitcoin broke free from a very narrow range, triggering a cascade of stop orders. From the short-term perspective, the price needs to recover above $6,000 handle to mitigate the bearish pressure; however, there are no clear signals that the upside correction is gathering pace. The Relative Strength Index (RSI) stays flat in the oversold territory. 

On the downside, the critical support lies with $5,300.  A sustainable movement lower will exacerbate the decline.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Cryptos feed

Latest Crypto News & Analysis

Editors’ Picks

Bitcoin regains safe-haven status, moves in sync with gold amid coronavirus scare

Bitcoin (BTC) resumed the upside after a short-lived consolidation period. The first digital currency has gained over 3% of its value in recent 24 hours to trade at $8,620 at the time of writing.

More Bitcoin News

Bitcoin Gold jumped by 30% amid the news of 51% attack

Bitcoin Gold (BTG), now the 35th digital asset with the market value of $200 million, has gained over 14% in the recent 24 hours to trade at $11.82 at the time of writing. 

More Bitcoin Gold News

Ethereum Classic defies gravity with 17% growth

Ethereum Classic, the 11th largest digital asset with the current market capitalization of $1.18 billion, has gained over 14% in the recent 24 hours to trade at $10.17, off the intraday high hit at $10.32. ETC/USD is one of the best-performing assets.

More Ethereum Classic News

Ripple's report reveals a real use case for XRP and other mathor cryptocurrencies

Ripple's XRP, the third-largest digital asset with the current market value of $10 billion, is changing hands at $0.2284, down from the intraday high of $0.2334. XRP/USD has gained over 3.5% in recent 24 hours in line with the global sentiments improvement.

More Ripple News


Bitcoin Weekly Forecast: Bitcoin bulls and bear fight gets a tougher edge

The cryptocurrency market started the downside correction after a strong rally initiated by risk reversal play at the beginning of January and reinforced by various altcoin pumps...

Read the weekly forecast