|

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

More from John Isige
Share:

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

By subscribing you agree to our Terms and conditions.

Editor's Picks

Avalanche struggles near $12 as Grayscale files updated form for ETF

Avalanche trades close to $12 by press time on Wednesday, extending the nearly 2% drop from the previous day. Grayscale filed an updated form to convert its Avalanche-focused Trust into an ETF with the US Securities and Exchange Commission.

Bitcoin slips below $87,000 as ETF outflows intensify, whale participation declines

Bitcoin price continues to trade around $86,770 on Wednesday, after failing to break above the $90,000 resistance. US-listed spot ETFs record an outflow of $188.64 million on Tuesday, marking the fourth consecutive day of withdrawals.

Michael Selig assumes role as new CFTC Chair, what does this mean for crypto?

Michael Selig has been sworn in to serve as the 16th Chairman of the Commodity Futures Trading Commission. Selig was confirmed by the US Senate to head the commission last week, following his October nomination by the US President Donald Trump.

Crypto.com hires sports trader for event prediction market-making

Crypto.com plans to recruit a quant trader for the sports market-making team to buy and sell financial contracts related to these events. Opponents argue that internal trading desks put operators or their affiliates on the opposite side of customer trades. 

Orange Juice Newsletter – Smart insights by real people. Every day.

A free newsletter highlighting key market trends to help traders stay a step ahead. Daily insights on the most relevant trading topics, compiled by our experts in an easy-to-read format so you never miss an important move.

Bitcoin: Fed delivers, yet fails to impress BTC traders

Bitcoin (BTC) continues de trade within the recent consolidation phase, hovering around $92,000 at the time of writing on Friday, as investors digest the Federal Reserve’s (Fed) cautious December rate cut and its implications for risk assets.