Bitcoin price analysis: BTC/USD breaks trendline support; back below $7,000

  • Bitcoin price is on a path of breaking barrier below $7,000.
  • BTC/USD must find a support above $6,900 to avoid yet another break down towards $6,800.

Bitcoin price settled above $6,900 following the overarching declines on Friday last week. Since then it has been pivotal at the $7,000 level, although the upside appears to be limited below $7,150. The price picked up the pace on Monday 6 during the Asian trading hours. BTC/USD broke out using the support at the 50% Fib retracement level taken between the highs of $7,163.59 and $6,891.73 lows at $7,028.08.

The price attacked the short-term resistance at $7,075 but failed. Subtle lower corrections continued but a reverse trend occurred at $7,040. Bitcoin sprung up into an engulfing candle that was unstoppable until the intraday resistance at $7,150. The buyers lack the support to maintain the price above $7,000. Besides, at the time of press another bearish wave has sent Bitcoin tumbling past the trendline support at $7,080.

Furthermore, the 50 simple moving average in the 15-minutes timeframe chart did very little to prevent the slide below $7,000. BTC/USD is testing the support at $6,950, however, it is likely that the price will break down into the $6,800 range. $6,900 is both a support and a break down; if the price finds support above this level, a reversal towards $7,000 will follow. However, a slide below $6,900 will have Bitcoin breaking down into another downward spiral towards $6,800. Indicators on the chart at this time are highly bearish but it also means that the sellers are getting exhausted and the buyers could find an entry. 

BTC/USD 15-minutes chart


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.