From the last bearish impulse of March 12 and today, BTC/USD pair has been confined between $4,500 and $5,500. The price is yet to break these levels, which have been the main reason for the range-bound movement.
BTC/USD – 4 Hour Chart. Source: Trading View
After the bearish impulse, the price drops to $4,607, and it has been fluctuating between $4,500 and $5,500. During the five days of consolidation, the market has broken the $5,500 resistance but could not penetrate the resistance of $6,000. The resistance at $6,000 is now a significant hurdle for the price of Bitcoin to jump over. The hope of an upward move will be dashed if the bulls fail to break the $6,000 resistance.
Failures of the bulls to push above $6,000 will attract sellers to push the price below $4,500. BTC is now falling. It is likely the bears may want to break the lower price range.
Bitcoin may slump to a low of $3,800 if the $4,500 support is broken. Bitcoin is below level 28 of the Relative Strength index. It indicates that the cryptocurrency is in the oversold region of the market. It also means that buyers may likely emerge. The current downward move is doubtful if buyers emerge.
Bitcoin Ranges between $4,500 and $5,500
BTC/USD – Daily Chart Source: Trading View
On the daily chart, the last bearish impulse was between $8,000 and $4,600. From every indication, the bulls are not ready for the recovery of Bitcoin. Bitcoin has earlier suffered rejection at the $6,000 resistance, and there is deepening selling pressure as the market moves downward. We may likely have another breakdown to the low of $3,800. Bitcoin was previously above 20% range, but the stochastic bands are pointing into the oversold region. It appears the bulls are bent in pushing BTC downward.