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Price Analysis: Bitcoin (BTC) Drops Below $6,000, May Be Range-Bound for Few Days

The BTC/USD trading pair faces rejection at $6,800 and $7,000 as the market makes a downward move. The bulls could not sustain the upward move because of the lack of buying power at a higher price level. As the market makes a downward move, Bitcoin, may find support at $5,800 or $5,200.

BTC/USD - 4 Hour Chart

BTC/USD – 4 Hour Chart

Following the rejection at the $7,000 overhead resistance, the cryptocurrency may be compelled to a sideways move. Before this time, the price has been fluctuating between the levels of $4,500 and $6,000. In the process of time, the bulls broke the $6,000 resistance to reach the $7,000. It is because of the bulls’ lack of buying power and inability to push above $7,000, resulting in the downward movement. Bitcoin is trading at $5,882 as at the time of writing.

As the coin retraces to a low of $5,800, a rebound may occur and a rally above $6,800 is possible. On the other hand, if the selling pressure is intense and $5,800 support cracks, the price will drop to the next support at $5,200. Nonetheless, a breakdown may occur if the downward move extends to $4.400 low. Bitcoin is at level 48 of the Relative Strength index. It indicates that Bitcoin is in the downtrend zone. Also, it is below the centerline 50 indicating it may fall.

Bitcoin hits a high $7,000 but pulls back

BTC/USD - Daily Chart

BTC/USD – Daily Chart

On the daily chart, the bulls bought at the $5,000 support and the market makes an upward move. On March 20, there was a price spike, the market reached a high of $7,000 and pulled back. The pulled back was above $6,000 support. The support was held for two days before its eventual downward move. Bitcoin is in a bullish momentum and it is above 40% range of the daily stochastic. Bitcoin is likely to make an upward move if the bulls break the resistance line of the channel

 

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