Yesterday, Bitcoin (BTC) made a surprise move to $7,200 but was rejected. The coin declined to $6,600 and pulled back. It is currently trading at $6,700 which is a bearish trend zone.
Since April 10, after the breakdown to $6,800 low, the bulls have been able to sustain the price above the $6,800 support level. However, the bulls took a step further as price broke the $7,000 resistance and reached a high of $7,200. Suddenly, the bears responded as the upward move was resisted. Undoubtedly, the downward move becomes unavoidable as it is now in the bearish trend zone. The market is above $6,700 support level.
On the upside, if BTC will recover, the $6,700 must hold and the price is pushed to $6,900 high. Subsequently, the momentum will increase on the upside. On the downside, if the $6,700 support cracks, BTC will fall to the low above $6,400. Nonetheless, if buyers succeed in holding that level, the upward move will resume. However, if the selling pressure continues, the market will fall to a low of $5,900. Meanwhile, the pair has fallen to level 38 of the Relative Strength Index Period 14. It explains that the market is approaching the oversold region.
Bitcoin falls into bearish trend zone of $6,700
Yesterday, on the daily chart, the bears succeeded in breaking below the 26-day EMA and the 12-day EMA. The bulls have earlier succeeded above $7,000 resistance, but this propels the bears to overwhelmingly push price to the low of $6,600.
Immediately, the bulls pulled above $6,700 but the price is still below the EMAs. The bearish signals may provoke a further downward move. The pair may revisit the previous low of $6,000. Meanwhile, BTC is now below 80% range of the daily Stochastic. It implies tat the pair is in a bearish momentum.
