- Bitcoin trades down, looking for the $6,400 level, after failing short on the channel ceiling test.
- Ethereum and Ripple follow BTC’s downward movement but in worse scenarios.
Bitcoin failed in its attempt to break above the current slightly-bullish channel. Now it’s time to retreat, looking for a technical consolidation, and also dragging along Ethereum and Ripple, although these coins show different technical setups that do not need consolidation due to their weak uptrends.
BTC/USD 240 Min
Bitcoin is trading at $6,607 after hitting the $6,564 mark, where it faced the EMA50, SMA200 and a support by price action. If Bitcoin breaks below this level, it will find support in the SMA100, which moves just below the $6,400 level. This level should be the end of the retracement if BTC/USD wants to get out of the pessimistic environment that has been in place for the last months. Bitcoin could move until the $6,340 support level, but it should be a very-quick trip if bulls want to have a chance.
On the bullish side, the last resistance is still alive and will be Bitcoin's first target. It is now located just below the $6,800 level. Above this round number, markets would change their psychological structure and become strongly bullish. Beating the next resistance at $6,850 will be the crucial prelude, followed by the key level at $7,100.
The MACD at the 240-min chart looks down but above the zero level, where it will probably pull back before deciding where it will go in the coming weeks. This level could be an opportunity to add or cancel our trades.
The Directional Movement Index shows us how buyers have taken control but are losing strength versus sellers. The sell-side has increased its activity along the downward movement, but it’s always below the levels that signal the existence of a trend.
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