- Bitcoin embarks on a gain-trimming mission amid the ongoing hunt for a bottom.
- $7,000 – $7,1000 becomes a short-term buy zone for traders hoping to sell at $7,400 and $7,700 respectively.
Bitcoin continues to narrow down towards $6,000. The down trend is clear shown by taking a broader technical picture using the daily chart. Bitcoin has been recording a series of lower highs and lower lows since the majestic recovery from levels close to $3,150 in December 2018 to highs around $13,800 in June, 2019. There have been episodes of recovery, however, the bears seem to always have the last laugh.
In the recent dive to regions slightly above $6,500, Bitcoin reversed the downtrend clearing several barriers including, $6,800, $7,000, $7,400 as well as $7,800. A further correction above $8,000 would have cemented the bulls’ presence on the market. However, Bitcoin bears took advantage and enacted a gain-trimming mission.
BTC/USD daily chart
In the last weekend, price action remained drab as Bitcoin sort for support at $7,400 and $7,300 respectively. The downside momentum continued into the new week, with BTC diving further below $7,200. Fortunately, the buyers waiting to buy at $7,000 – $7,100 are beginning to increase number. While a reversal has occurred above $7,200, it is not enough to sustain movement past $7,300.
Meanwhile, the break below the bearish flag pattern support break is adding fire to gasoline. The prevailing trend is strongly bearish. The high volatility coupled with the downward slopping RSI suggests that the bearish grip will only get stronger.
On the upside, $7,300 is the immediate resistance. Trading above this zone could easily see Bitcoin scale the levels above $7,400 and $7,500. However, Bitcoin requires a catalyst towards $8,000, a move that will eventually place it in upward trajectory assisted by impending the falling wedge pattern breakout.
Bitcoin Key Technical Levels
Spot rate: $7,259
Relative change: -143
Support: $7,100, $6,800 and $6,500
Resistance: $7,300, $7,400 and $7,700