Bitcoin Takes a Breather, But is BTC Poised to Drop to $6,000?

Bitcoin Takes a Breather, But is BTC Poised to Drop to $6,000?

Bitcoin price has leveled out following the long-awaited correction that initiated in early Asian trading on Friday. The thousand dollar drop found support above $7,000 and a new trading range has formed there for now. The big question for traders and those looking for a better entry point is; will BTC fall back to major support above $6,000?


Trending Down Since Thursday

Weekends are usually quiet on crypto markets and Saturday mornings trading in the Far East has been no exception. Bitcoin price 00 did drop to an intraday low of $7,045, according to Coinmarketcap.com, but recovered back to form the range bound channel at around $7,300.

The next move will be critical and many are secretly willing it to drop further to create better accumulation opportunities.

Crypto trader and self-styled chart psychologist Chonis Trading has done the analysis highlighting descending support and resistance lines in the current channel;

Looking at that it is clear that a new short term downtrend could be forming as lower lows are being recorded. This reversal started on Thursday when BTChit its 2019 high of $8,300. Continuation of this channel would see BTC bounce off these resistance points over the coming days.

Most analysts are in agreement that there is huge support in the low $6,000s. So this has become the target on the downside. $6,400 was the most commonly traded price of 2018 so a return there would not be surprising. Bitcoin remained trading in that channel from August to mid-November last year.

Looking at moving averages, the 50 day could come into play and this currently sits around the $5,500 level.

Some are claiming that the drop has caused technical damage in the short term and highlighted the discrepancies and huge spread differentials between different exchanges. Analyst at Forex.com, Fawad Razaqzada, told MarketWatch;

I think the drop has caused a lot of technical damage in the short term and the way it dropped is kind of a reminder that things like that can happen again

In fact, bitcoin is looking extremely overbought in the short-term. So, for the sake of healthy price action, bitcoin will either need to correct itself or, ideally for the bulls, consolidate for a while before it makes further gains.

BTC Fash Crashes to Low $6K Range But Bounces Back

European crypto exchange Bitstamp attributed the fall to one large BTC sale which impacted the order book creating a cascade effect.

Either way, corrections are natural constituents of market cycles and before Bitcoin can reach new highs, it needs to pullback. The trend this year has been the complete opposite of 2018 and further gains are on the cards.


BTC is just taking a breather at the moment, though it may have further to fall in the short term.

Do you think Bitcoin will fall further or rally again? Use the comments below to let us know.

Images via Shutterstock, Tradingview.com

The post Bitcoin Takes a Breather, But is BTC Poised to Drop to $6,000? appeared first on Bitcoinist.com.

18.05.2019 / 00:00 78
Ethereum Price Analysis: ETH Back In Familiar Range, Can Buyers Take Control? Ethereum Price Analysis: ETH Back In
ETH price recovered nicely from the $132 support level and traded above $134 against the US Dollar. The price even cleared the $135 and $136
Ripple Price Analysis: XRP Following Downtrend Channel Below $0.3200 Ripple Price Analysis: XRP Following
Ripple price declined further below $0.3080 and tested the $0.3000 support area against the US dollar. The price traded as low as $0.2983 and it is
Ethereum Classic Price Analysis: ETC/USD Eyeing Upside Break Above $10 Ethereum Classic Price Analysis:
Key Highlights Ethereum classic price is forming a decent support base near the $9.20 level against the US dollar. There is an ascending channel
Ethereum Price Weekly Analysis: ETH/USD Remains in Broad Range Ethereum Price Weekly Analysis: ETH/USD
Key Highlights ETH price is currently trading in a broad range above the $210 support against the US Dollar. There is an ascending channel formed
Ethereum Price Analysis: ETH/USD Slowly Rising Towards $290-295 Ethereum Price Analysis: ETH/USD Slowly
Key Highlights ETH price remained supported near $265 and it slowly moved above the $270 level against the US Dollar. There is a short-term ascending
Bitcoin Price Watch: BTC/USD Remains Range Bound Bitcoin Price Watch: BTC/USD Remains
Key Points Bitcoin price is stuck in a tight range between the $6,000 and $6,300 levels against the US Dollar. There is a declining channel forming
Comments (0)
Add a comment
Comment on