Bitcoin Price Analysis: BTC/USD not out of danger yet as a bearish pennant pattern forms, fall to $6,000 probable

Bitcoin price is exchanging hands at $6,873 after sliding under the critical $7,000 level. The most-traded crypto in the market recently spiked hitting highs around $7,357. This surge revived the hope of Bitcoin trading above the coveted $8,000 zone before the halving in 22 days. However, a retreat from the highs marked the end of the bullish action as the price spiraled.

Interestingly, the 50-day SMA support is still intact while an ascending trendline aids in providing support. The main aim in the short term is to keep the price above the 50 SMA and to pull BTC/USD above $7,000.

BTC/USD daily chart

From a technical perspective, Bitcoin is likely to continue with the bullish reversal. The MACD in the daily range clearly shows that the trend is in favor of the buyers following a correction from the dip to -1.080 on March 12. At the time of writing, there is a bullish divergence from the MACD, emphasizing on the influence the bulls have on the price. However, the shrinking volatility could continue to limit movement north.

On the other hand, the formation of a bearish pennant pattern introduces a bearish cloud over Bitcoin despite the recovery from March lows. It means that if a recovery towards $8,000 lags, bears could force another devastating free-fall, likely to test $6,000.

Bitcoin Intraday Key Levels

Spot rate: $6,850

Relative change: 12.23

Percentage change: 0.18%

Trend: Bullish

Volatility: Shrinking