Gradually, BTC/USD pair is making a downward move after its unsuccessful attempts to push above $7,000 overhead resistance. Bitcoin traded between $6,400 and 6,800, purposely to break $7,000 overhead resistance. On March 28, BTC began its downward move as it fell to a low of $6,200.
The initial upward move of Bitcoin was a rebound at the low of $4,000 on March 13. This positive move catapulted the coin to reach $7,000 on March 20. Thereafter, the bulls were unrelenting as they attempt to break the $7,000 overhead resistance. The bottom line is that the bulls were unable to push forward because of stiff resistance.
The bears broke the trend line and close below it at a low of $6,200. The downward move as extended to a low of $5,956. Meanwhile, BTC has fallen to level 33 of the Relative Strength Index. It indicates that it is approaching the oversold region. Besides, the market may further depreciate because it is below the centerline 50.
Bitcoin May Revisit the Previous Low at $5,500
Recently, the cryptocurrency slumped to a low of $6,200 and consolidated above the current support for two days. The bulls’ inability to break above $7,000 is majorly a lack of buyers at higher levels. Yesterday, BTC drops again to the $5,956 low. Analysts are of the view that if Bitcoin fails to regain its $6,800 level, the market will drop to a low of $5,500.
It is likely the momentum will extend to $5,000, if the bears succeed in pushing the price to the low of $5,500. Meanwhile, Bitcoin is below 80 % range of the daily stochastic. This implies the BTC is in bearish momentum. The market is on a downward move to the previous low. The upward move was earlier repelled at the 26-day EMA.
