• BTC managed to recover partially from the recent flash crash.
  • The further upside may be limited.

Bitcoin (BTC) has recovered from a scary flash crash that took it all the way down from $7,800 to as low as $6,512. The first digital coin lost about 16% of its value in a matter of hour with no particular reason except for speculative positioning and profit-taking ahead of the weekend. While Bitcoin managed to claw back some ground and return to the area above $7,000, it is still more than 7% lower from the start of the day and 9% down on a day-on-day basis.

Looking technically, BTC/USD reclaimed $7,200 barrier (SMA200 1-hour, SMA50 4-hour)), which now serves as local support for the coin. Once it is cleared, the downside is likely to gain traction as the coin will negate all weekly gains. The next focus is on psychological $7,000. Another move below this handle will speed up the sell-off towards $6,800 and spoil the short-term technical picture. The ultimate support is created by a confluence of strong technical indicators on approach to  $6,500. They include SMA100 weekly and SMA200 4-hour).

On the upside, we will need to see a sustainable move above $7,500 barrier (Pivot Point 1-n=month resistance 3) to negate immediate downside pressure. Once it is cleared, the upside is likely to gain traction with the next focus on $7,800 (SMA5 h-hour and DMA5), followed by a critical $8,000.

The Relative Strength Index on intraday charts has moved outside an oversold territory; there are no signs of the reversal yet. It means that the prices are likely to consolidate at current levels for the time being.

BTC/USD, 4-hour chart

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.

Cryptos feed

Latest Crypto News & Analysis

Editors’ Picks

Bitcoin attempts a dead cat bounce amid a descending channel

Bitcoin (BTC/USD), the most dominantly traded cryptocurrency, is seen attempting minor recoveries on the 9900 handle, having extended the recent declines to 9,850.65, in the wake of a symmetrical triangle breakdown on the hourly sticks seen on Saturday.

More Bitcoin News

Top 3 Coins' Price Prediction: Bearish bias intact despite tepid recovery attempts

The world’s no. 1 digital coin, Bitcoin, is seen driving the broader market. However, the third most traded cryptocurrency, Ripple, fails to benefit, as it continues to lose nearly 4% so far this Sunday. 

More Cryptocurrencies News

Bitcoin Cash: Choppy inside falling wedge, with limited upside

Bitcoin Cash (BCH/USD) breached Thursday’s low of 302.41 but managed to hold the 302 handle before staging a comeback.  Despite the latest recovery attempt, the price is down 3% in the last 24 hours.

More Bitcoin Cash News

IOTA technical analysis: Sell the bounce, as bears still eye 0.2550/25

IOTA (IOT/USD), the 17th largest cryptocurrency, risks further downside in the near-term amid bearish technical setups on different time frames. 

More IOTA News


Bitcoin weekly forecast: Let the altcoin season begin

All major altcoins demonstrated strong growth while Bitcoin reluctantly oscillated in a tight range and stayed vulnerable to bearish sentiments. The first digital currency spends the best part of the week hovering around $10,200 level.

Read the weekly forecast