Bears Attack Bitcoin at the Daily Close as BTC Price Slips Below $6,666
Bitcoin price continues to struggle as it shed $200 more dollars with less than a month now before its much-anticipated halving event.
Within the last 24-hours Bitcoin (BTC) price dropped to a two week low at $6,468. The mild correction came right at the daily close and although the price traded most of the day between $6,780-$6,680, the downside move should be no surprise as a pattern of daily lower lows has been in play since April 10.
Crypto market daily performance. Source: Coin360
For some traders, the $6,666 meme has been something of a line in the sand and glance at the 4-hour chart shows the price has a tendency to wick down once this devilish level is pierced.
All humor aside, traders have been expecting a strong directional move since the price rejected around the $7,400 range on April 7, 8 and 9, and another signal was the daily decline in trading volume.
The price has also struggled to push above the 50-day moving average ($7,000) and below this level, $6,900 has been an especially difficult resistance to overcome.
BTC USDT daily chart. Source: TradingView
On the daily timeframe, there is a high volume node extending from $6,600 to $6,850 and this area had functioned as support since April 2. But yesterday’s dip to $6,468 now has traders eyeballing $6,400 and $6,200.
Knock out $7,250 or bounce at $5,800?
As has been thoroughly discussed in previous analysis and across crypto Twitter, a break below the $6,200 support increases the chance that Bitcoin price will revisit the supports in the $5,800-$5,400 area.
BTC USDT 4-hour chart. Source: TradingView
On the shorter timeframe, one can see that the price has dropped below the moving average of the Bollinger Band indicator. But while the $6,650 support has been lost, the most recent candlestick and increase in buy volume show traders bought into the dip. Though a 4-hour close above $6,763 is needed to rouse any hope that Bitcoin can reclaim the $6,900 to $7,000 zone.
The long-term descending trendline from the Feb. 13 high at $10,508 still looms overhead at $6,720 and aside from the 50-MA, Bitcoin price has struggled to sustain above the trendline.
Ultimately, not much has really changed with the market structure. The point of control is at $7,300 and a bullish outcome will require the price to push through the resistance zone at $6,900-$7,260 in order to take a shot at $8,000 at the 61.8% Fibonacci retracement level.
As discussed earlier, a bearish outcome entails the price dropping to $6,400, $6,200 and $5,800 where Bitcoin will have formed a double bottom.
Bitcoin daily price chart. Source: Coin360
As the Bitcoin price dropped 3.68%, altcoins followed with similar losses. Ether (ETH) corrected by 4.29%, Bitcoin Cash (BCH) dropped by 4.82% and Binance Coin (BNB) dropped by 6.77%.
The overall cryptocurrency market cap now stands at $190 billion and Bitcoin’s dominance rate is 64.2%.Keep track of top crypto markets in real time here
let us know if you have other interesting news about this topic or other interesting crypto news. Take a look at our useful collection of bitcoin videos and learn more about Bitcoin and Blockchain. Investing in Crypto can be very profitable but always make sure you’re keeping your coins safe and keep being informed reading our latest news about cryptocurrencies.
You’re invited to share your opinion about this news “Bears Attack Bitcoin at the Daily Close as BTC Price Slips Below $6,666” by adding your comment bellow. Let’s keep this discussion civilized with a non-offensive language.