Bitcoin Price Analysis: BTC/USD V-shaped reversal unsustainable, breakdown to $5,000 lingers


  • Bitcoin price upward momentum fails to break the critical resistance a $7,000.
  • BTC/USD sharp V-shaped reversal from recent lows under $4,000 seems unsustainable amid increased bearish grip.

Spot rate: $6,699

Relative change: 9.48

Percentage change: 0.15%

Trend: Bearish

Volatility: Low

BTC/USD daily chart

BTC/USD price chart

Bitcoin price is vulnerable to losses likely to test $5,000 as long as it stays under the critical $7,000 zone. According to an analyst on Twitter, MacroCRG, the sharp V-shaped recovery from the recent fall under $4,000 is not sustainable. In his view, Bitcoin could make a downturn back to $5,000 before a formidable recovery is achieved.

The building bearish momentum is emphasized by the 50-day SMA double-cross under the 200-day SMA. This shows that seller influence over the price is growing. Moreover, market volatility is still high amid the chaos caused by the Coronavirus pandemic. I expect fresh interest in BTC at a lower price between $5,000 and $6,000 as investors buy low in readiness for a rally post Bitcoin halving.

Resistance one: $6,832 – Highlighted by the previous high 1-hour, Bollinger Band 15-minutes upper curve and the 61.8% Fibonacci one-day.

Resistance two: $6,972 – Highlighted by the previous week high and the pivot point one-day resistance one.

Support one: $6,692 – Highlighted by the BB 15-mins lower, SMA 200 15-mins, SMA 50 1-hour and the previous low 4-hour.

Support two: $6,482 – Highlighted by the BB 4-hour middle curve and the previous low one-day.

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Cryptos feed

Latest Crypto News & Analysis

Editors’ Picks

BTC/USD may retest SMA200 weekly if $6,500 is not retaken any time soon.

BTC/USD is hovering around $6,300, down 1% on a day-to-day basis. The first digital coin has been moving within a short-term bearish trend amid expanding volatility.

More Bitcoin News

Ripple Price Prediction: XRP/USD short-term bulls aim at $1780

Ripple (XRP) has been range-bound recently. The third-largest coin settled above $0.1700, which is a good signal, but the further upside seems to be limited so far.

More Ripple News

ETH/USD locked in a range; short-term recovery capped by $134.40

ETH/USD is changing hands at $132.00, mostly unchanged both on a day-to-day basis and since the beginning of Wednesday. The second-largest digital asset has been moving within a short-term bearish trend amid high volatility. 

More Ethereum News

Triangle pattern breakout hints BCH/USD rally beyond $250

Bitcoin Cash price if dealing with increased selling activity on Wednesday just like the other major cryptocurrencies. BCH/USD is down 1.33% on the day while the price hovers above the initial short term support at $214.

More Bitcoin Cash News

BEST CRYPTO BROKERS/EXCHANGES

Bitcoin Weekly Forecast: Coronavirus will either kill Bitcoin or make it stronger

Bitcoin is about to finish the second positive week in a row. The first digital coin has recovered from $5,680 and came close to psychological $7,000 during the week.

Read the weekly forecast

BTC

ETH

XRP