| ⠀Bitcoin price: | $7,130 |
|---|---|
| ⠀Key BTC resistance levels: | $7,570, $7,698, $7,915, $8,000, $8,242 |
| ⠀Key BTC support levels: | $7,000, $6,963, $6,838, $6,790, $6,655 |
*Price at the time of writing
Bitcoin saw a further 5% price fall this week, bringing the price for the cryptocurrency as low as $7,020. The cryptocurrency is battling to remain above $7,000 as the bulls continue to defend a symmetrical triangle pattern. Toward the start of the month, Bitcoin had broken out of an acute symmetrical triangle, but has now developed a longer termed pattern as it approaches the apex.
BTC still has an impressive market cap value of $129 billion even after a 30% price drop over the past 3 months!
How to buy Bitcoin (BTC) on Binance?
Bitcoin price analysis
What has been going on?
Taking a look at the daily chart above, we can see that Bitcoin failed to break above the resistance at $7,570, causing it to roll over and head lower. We can see that some support was found at $7,120, but the coin continued to break beneath here to reach the $7,020 level. We can also see that Bitcoin has now established a new symmetrical triangle as we wait for a breakout toward the apex.
Bitcoin price short-term prediction: Neutral
As we are trading within a symmetrical triangle, we can consider the market to be neutral at this moment in time. However, over the long term, Bitcoin is certainly in a bearish trend. For this trend to be considered bullish, we must see Bitcoin breaking above the resistance at $7,800 and continuing above $8,000.
If the sellers do push the market beneath the triangle, we can expect immediate support at $7,000. If the sellers push beneath $7,000, we can consider the market as bearish. In this case, we can expect immediate support at the $6,939, $6,840, $6,790, and $6,698 price points, provided by a short-term downside Fibonacci Extension level (not shown on the daily chart).
If the selling continues further lower, added support can be found at $6,519, $6,400, $6,295, and $6,000.
What if the bulls regroup?
Alternatively, if the buyers regroup and push higher from the lower boundary, we can expect immediate resistance to be located at the upper boundary of the formation. Above this, resistance lies at $7,290, $7,400, $7,570, and $7,709. If bulls continue above the $7,800 level, resistance can be found at $7,915 and $8,068 (long term bearish .5 Fibonacci Retracement level).
What are the technical indicators showing?
The RSI is beneath the 50 level to show that the sellers are in charge of the market momentum. However, the Stochastic RSI shows promise for the bulls as it reaches extreme overbought conditions and is primed for a bullish crossover signal which should help push the market higher.
Alternative analysis
In this alternative analysis, “CryptoBullet” presents his argument for why he believes that Bitcoin is heading beneath $6,000. In my personal opinion, I have been stating that at $6,000, Bitcoin will have completed the previous technical pattern after it dropped beneath the descending wedge during September 2019.
