|

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:

Editor's Picks

Ripple and Stellar outlook: XRP and XLM await direction amid cautious sentiment

Ripple and Stellar trade cautiously as both tokens hover around key technical levels. XRP is testing resistance at its 50-day EMA, while XLM continues to consolidate around the $0.187 support zone. Meanwhile, mixed derivatives data with a slight bearish tilt suggests traders remain cautious, keeping the next directional move uncertain.

Crypto Market Overview: Bitcoin recovery eases – HBAR and LDO test key resistance zones

Bitcoin edges below $66,000 extending the previous day's losses. Hedera and Lido DAO sustain bullish momentum, testing the breakout of a crucial resistance zone to extend their rally. CoinMarketCap’s Fear and Greed Index at 39 stalls below the neutral territory, indicating that sellers remain dominant.

Senate Republicans release updated CLARITY Act with new crypto ethics restrictions

Senate Republicans released an updated version of the Digital Asset Market CLARITY Act on Wednesday following briefing calls with stakeholders. The update adds a package of ethics restrictions targeting digital asset activities by public officials and their spouses.

Hyperliquid, Robinhood could lead crypto’s next bull market as DeFi and TradFi converge
The next crypto bull market could be driven by the growing convergence between blockchain-based financial infrastructure (on-chain) and traditional finance (TradFi), according to Bitwise CIO Matt Hougan. In a report published late Tuesday, Hougan argued that crypto may be showing early signs of a market bottom, with Bitcoin gaining 9% since July 1 even as the NASDAQ 100 declined 6%.
Bitcoin’s potential recovery in the second half hinges on these 4 catalysts
Bitcoin (BTC) has fallen over 34% in the first half of this year as the King Crypto failed to capitalize on a good semester for risk assets despite the woes from the Iran war.