- Losing $7,500 support was detrimental for Bitcoin as the next stop could be $6,500.
- Bitcoin must resume the uptrend above the initial resistance at $7,331 to pave the way for gains towards $8,000.
Bitcoin price has remained lethargic in action after it gave up $7,500 support. The recovery from Monday’s trip below $7,200 has not managed to clear the resistance at $7,400. BTC is trading at $7,300 following a downside correction from an intraday high around $7,412.
According to Joe DiPasquale, the CEO of BitBull Capital, a crypto fund a research firm, Bitcoin’s “the next stop would be $6,000,” especially after breaking below $7,500 support. Recovery will continue to drag because of the low volumes bring recorded. DiPasquale said via a tweet:
“If the current support at $7,500 is breached conclusively, the next stop would be $6,000. The maximum upside, meanwhile, is limited to $9,500. A break down is more likely than a break upward, however, due to low volumes, repeated new lows, and low sentiment.”
Bitcoin Confluence Detector
Bitcoin initial resistance is seen at $7,331. A cluster of indicators calls the same zone home, turn, making it impenetrable. Some these indicators range from the SMA ten 15-minutes, SMA five 15-mins, SMA 100 15-mins, previous low 4-hour, Bollinger Band 1-hour middle and SMA 200 15-mins among others.
If the buyers managed to pull Bitcoin above the resistance above, the rest of the journey towards $8,000 will be relatively smooth. However, various hurdles a $7,483, $7,710 and $7,938 will still give buyers a hard time.
As far as support is concerned, $7,255 is the first anchor, currently highlighted by the Fibo 23.6% daily and the Fibo 23.6% one-month. Other subtle support areas include $7,104, $6,952 and $6,573.
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
TRON price could pull a 180 on bears and trigger a 60% rally soon
TRON price has been stuck trading inside a massive bearish pattern for more than a year. Although TRX came very close to triggering a bearish breakout, buyers stepped up and reversed the trend. If this development continues, there could be a bullish breakout for the altcoin.
BNB drops by 4% as Binance confirms potential $586 million exploit on BNB Chain
The world’s largest cryptocurrency exchange is observing an attack on its token chain and cryptocurrency. In response, Binance Coin’s price began falling on the charts making the investors highly concerned. Binance Coin has dropped by almost 4% since the opening hours.
XRP price is setting up for a sharp decline toward $0.40, here's why
XRP price could witness a sell-off into the mid $0.40 levels if the bulls hurdle through the $0.50 barrier. XRP's failure to maintain momentum over the $0.50 threshold may result in Ripples' demise. Invalidation of the bearish thesis is a breach above $0.51.
XRP price is setting up for a sharp decline toward $0.40, here's why
XRP price could witness a sell-off into the mid $0.40 levels if the bulls hurdle through the $0.50 barrier. XRP's failure to maintain momentum over the $0.50 threshold may result in Ripples' demise. Invalidation of the bearish thesis is a breach above $0.51.
Bitcoin: BTC’s Q3 close and what to expect in Q4?
Bitcoin price has developed a bullish divergence with RSI, hinting at more upside. Despite the optimistic technicals, investors should expect volatile swings before the end of the third quarter of 2022.