- Bitcoin price slides in a bear range following the sudden sharp declines.
- BTC/USD is still in danger of further drop heading to $4,000.
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
Get 24/7 Crypto updates in our social media channels: Give us a follow at @FXSCrypto and our FXStreet Crypto Trading Telegram channel
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
Ethereum continues hinting at rally following reduced long liquidations
Ethereum has continued showing signs of a potential rally on Tuesday as most coins in the crypto market are also posting gains. This comes amid speculation of a potential decline following FTX ETH sales and normalizing ETH risk reversals.
HBAR price jumps 75% as BlackRock tokenizes Money Market Fund on Hedera
Archax, Ownera and The HBAR Foundation have enabled the first tokenization of BlackRock’s money market fund (MMF) on Hedera. Last year Hedera Council member abrdn’s successfully tokenized its MMFs on Hedera.
Bitcoin price holds above $66K as Morgan Stanley files prospectus to add BTC ETF exposure in two of its funds
Bitcoin (BTC) price remains range-bound, holding above the $63,000 level, while its upside is capped below $68,000, going against or delaying the assumption that the fourth halving would be a 'sell-the-news' outcome.
Crypto community reacts as BRICS considers launching stablecoin for international trade settlement
BRICS is intensifying efforts to reduce reliance on the US dollar after plans for a stablecoin effort surfaced online on Tuesday. Most people expect the stablecoin to be backed by gold, considering BRICS nations have been accumulating large holdings of the commodity.
Bitcoin: BTC post-halving rally could be partially priced in Premium
Bitcoin (BTC) price briefly slipped below the $60,000 level for the last three days, attracting buyers in this area as the fourth BTC halving is due in a few hours. Is the halving priced in for Bitcoin? Or will the pioneer crypto note more gains in the coming days?