Bitcoin price analysis: BTC/USD one barrier breach away from $5000 return
- Bitcoin on Tuesday is trading in negative territory by 0.15%, as the price further consolidates.
- There is a risk of the price returning to depressed levels of $5000, if the bears bite again.
The Bitcoin price is trading down some 0.15% in the latter part of the day on Tuesday, as the price continues to move within consolidation mode.
BTC/USD has been moving within a narrowing range for approaching four weeks now, it has come following the strong downward trend that came into play between June - September. The price is has been flirting with critical support, which should be noted at $7800, acting as the bottom of the current narrow range.
Technically, price formation has formed somewhat of a bearish flag via the daily chart view. It is vulnerable to further potential downside moves, should the current daily support give way. A failure of this holding could open the door to a fresh wave of selling pressure, with eyes then on the next critical support zone at $5000.
BTC/USD daily chart
Author
Ken Chigbo
Independent Analyst
Ken has over 8 years exposure to the financial markets. He started his career as an analyst, covering a variety of asset classes; forex, fixed income, commodities and equities.
