Bitcoin Price Analysis: BTC/USD still at threat of retesting the big $6000 level again
- Bitcoin price in the latter stages of Wednesday’s session, seen down over 1%.
- BTC/USD broke out to the downside from an ascending trend line, which was providing firm support.
The Bitcoin Cash price smashed through a critical near-term area of support, an ascending trend line. This has been running from 3rd October, having provided a bounce on each time the price met the trend line.
Given the fast break lower, BTC/USD bulls may be given an opportunity to retest the breached area of support, around $6,570. There appears to be much protection ahead of the big $6000 bottom area, however bears are attempting to break this down. The number of times BTC/USD has required to receive resistance, in the key demand areas. Further penetration from the bears could lead to an eventual breach.
Demand areas are seen within the entire $6500-400 area. Further south would be $6100, where BTC/USD received strong bidding on 9 and 19th September, during a bear market. Eyes are currently peeled to see how the price will respond to the breached ascending trend line.
BTC/USD 4-hour chart
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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.
