- Bitcoin struggles to defend bearish flag pattern support in a bid to avert dire losses heading to $6,000.
- The RSI forms a higher low pattern; continued correction towards the oversold could ignite price movement to $7,500.
Bitcoin’s technical picture does not look good for the bulls. The bearish technical picture came into play following the failure to sustain gains after breaking the barrier at $7,900. The recovery from November lows around $6,530 was impressive enough to form a couple of key supports at $6,750 and $7,000.
However, the retracement from the recent high at $7,901 saw Bitcoin give up the key support range between $7,400 and $7,500. Bitcoin rested $7,200 support but has since recovered to the current market value at $7,268 (on Coinbase).
Joe DiPasquale, the CEO of BitBull Capital, a fund research firm reckons that Bitcoin breaking beneath $7,500 support opens the Pandora box. He explains that the asset’s upside is limited. Moreover, the low volumes alongside frequent lower corrections spell doom for Bitcoin.
“If the current support at $7,500 is breached conclusively, the next stop would be $6,000. The maximum upside, meanwhile, is limited to $9,500. A break down is more likely than a break upward, however, due to low volumes, repeated new lows, and low sentiment.”
BTC/USD 1-hour chart
Meanwhile, Bitcoin is struggling to stay above the trendline support; part of a bearish flag pattern. The buyers cannot afford to lose the trendline support. Otherwise, they will be risking the continue of the previous downtrend. Besides, on the downside, Bitcoin support target is at $6,000 especially if $6,500 gives in.
The RSI has been forming a gradual lower high pattern. If the indicator pushes the trend higher, Bitcoin could eventually catch momentum towards $7,500. What is clear is that Bitcoin bulls cannot afford to lose $7,000 support.
Bitcoin Key Technical Levels
Spot rate: $7,264
Relative change: -39.31
Percentage change: -0.54%