Bitcoin Price Analysis: BTC/USD on the wild rollercoaster, can $5,000 level even hold?

Bitcoin's price has continued to keep investors on the edge since Thursday. The breakdown is arguably the worst selloff experienced in the cryptocurrency market. From trading above $8,000 a couple of days ago to posting lows of $3,886. Volatility levels remain at peak while the path of least resistance is downwards.

At the time of writing, BTC/USD is teetering marginally above $5,000 following a more than 6% growth on the day. The price is also under the moving averages where the 200-day SMA is holding the ground at $8,650 and the 50-day SMA at $9,144.

The nosedive is likely to have been triggered technically when Bitcoin broke under the descending channel support on the daily chart and/or the support at $7,000. Although Bitcoin has corrected more than $1,000 from the intraday low on Friday, the path of least resistance remains to the downside.

The RSI is stuck in the oversold after reaching levels close to those in November 2018 when Bitcoin price posted lows around $3,150. The MACD in the same range is deep in the negative region and features a big bearish divergence.

It is apparent that support above $5,000 is key to stopping the rollercoaster ride towards the 2018 lows. Bulls now need to focus on higher levels at $6,000 and $7,000.

BTC/USD daily chart