- Bitcoin remains vulnerable to losses especially with $6,800 support broken.
- The existence of numerous resistance zones and fewer and week support areas suggests that a return to $5,000 is possible.
Bitcoin is having a bearish and drab start to the week. This comes after a weekend characterized by extreme volatility and selling activity. The love for the downtrend took off on Friday following the breaking below $8,000. Various support areas failed to hold including $7,800, $7,500 and $7,300. The losses extended below $7,000 further putting $6,800 under great pressure.
Meanwhile, the price action during the Asian hours has seen Bitcoin dive lows around $6,611 after opening the session at $6,907. With the prevailing high volatility coupled with a developing bullish trend, Bitcoin could recovery above $7,000.
Bitcoin confluence levels
Bitcoin is staring into stacks and stacks of resistance which hints that recovery will not come easy. The confluence tool places the first hurdle at $6,843, the zone where the SMA ten 15-minutes and the Bollinger Band 1-hour lower meet. Slightly above this is the next seller congestion zone at $6,913 as highlighted by the Bollinger Band 15-mins middle. In addition to that, correction above $7,000 will have to brace itself to clear the resistance at $7,053, $7,264 and the strongest resistance at $7,544.
On the downside, support levels are quite scarce. The first weak support is seen at $6,703 and is host to the previous low 15-mins and the pivot point one-day support one. Further down, the next support is at $6,633 and $6,563. He weak support areas in relation to the stacks of resistance levels suggest that Bitcoin is still in danger of dropping to $5,000 or even lower.
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