Bitcoin price watch: New 2018 lows, what’s next?

Investors and cryptocurrency enthusiasts and especially those in the Bitcoin community are asking themselves a difficult question, what’s next after the overwhelming plunge on Wednesday. The market was diving in the sea of red waters with Bitcoin, the leading crypto breaking below the base support at $6,000. This was the third time BTC/USD tanked below the critical $6,000 level in 2018. However, unlike the first and the second time, Bitcoin traded lows of $5,357.

A good number of analysts had expressed their views regarding Bitcoin price grinding lower below $6,000 in the coming weeks. The drop yesterday came sooner than it was expected, besides it broke the former support around $5,750 and extended the loss as mentioned before.

As discussed in an earlier published analysis, Bitcoin price is currently stuck in a resistance range where the upper limit at $5,700 is barrier to recovery. On the other side, Bitcoin supported at the lows, $5,357 (range support). The hourly range shows that the upside is limited by the bearish trendline. Further up, the initial resistance is at $5,638.95 (price congestion hurdle). If Bitcoin fails to correct above this level before this week ends, chances of breaking down below the current lows are high. The second resistance is at the broken support, $6,000.

On the downside, the initial support is at the recent lows, $5,357. Bitcoin bulls must keep the price above this level, otherwise they risk dropping further down towards $4,000. However, buying activities are still quite high while the MACD is showing higher levels in comparison to yesterday. The RSI is also in a positive range while it avoids making an entrance into the oversold region.

BTC/USD 1-hour chart