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Bitcoin Price Analysis: BTC/USD eyes $6,000 after breaking this pennant pattern support

  • Bitcoin price hits a wall slightly above $7,500 and dives under $7,000 amid a broad-based crypto selloff.
  • Further downward action is expected in the near term as observed using the RSI and the MACD.

Bitcoin is trading in the negative on Easter Monday following a weekend full of action. The price stepped above $7,500 but the lost steam before approaching the resistance at $7,600. Buyers and other investors were looking forward to pulling above $8,000. Instead, bears wasted no time enacting a revenge mission as BTC/USD dropped below several support areas including $7,200, $7,000 and $6,800.

At the time of writing, Bitcoin is trading at $6,713 after losing almost 3% of its value on the day. The prevailing picture is bearish amid high volatility. The RSI, for instance, has sharply retreated under the average (50). Further movement downwards could encourage sellers to increase their entries further pulling Bitcoin towards $6,000.

The same downward trend is emphasized by the MACD currently struggling to stay above the mean line. A bearish divergence puts the sellers in control. Besides, BTC/USD is trading below the moving average whereby the 100 SMA is hindering movement at $6,773 and the 50 SMA at $7,057.

A bearish weekend action saw Bitcoin price drop under a pennant pattern’s support. Continued reaction to this bearish pattern is deemed too detrimental for Bitcoin because the ongoing selling action could retest support at $6,000.

BTC/USD 4-hour chart

BTC/USD price chart

Author

John Isige

John Isige

FXStreet

John Isige is a seasoned cryptocurrency journalist and markets analyst committed to delivering high-quality, actionable insights tailored to traders, investors, and crypto enthusiasts. He enjoys deep dives into emerging Web3 tren

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