Bitcoin Price Analysis: How Long Will $6000 Support Hold?
Bears remain fully in control of Bitcoin price, yet somehow, the $6,000 support is holding…for now.
Bitcoin Price: 4-Hour Chart
After posting a daily high at $6,460, bitcoin price fell below the wedge formation and constant rejections at the 20-MA have kept BTC 00 in the pattern of lower highs.
Eventually, a bear flag formed and BTC continues to lose the hourly uptrend after every bull break so traders should either hold their powder or place tight stops in order to avoid being trapped by fake outs.
The drop below the ascending trendline was stopped at the $6,117 support but the overall scenario remains overwhelmingly bearish.
At the moment the bears have the ball, but the 4-hour chart shows higher lows being set throughout the day and a bullish divergence on the RSI does inspire a smattering of hope. However, earlier today the 50-MA dropped below the 200-MA, and all of the other short-term moving averages are crossed below the long-term MAs.
BTC needs to move above the daily high at $6,460 (slightly above the 23.6% Fib retracement) and the 200-MA at $6,573, which is an area that will likely provide stiff resistance.
While more downside is likely, BTC does have support at $6,180, $6,122, $6,000 and $5,900.
BTC appears to be consolidating into a tighter range but still struggles to move above the 20-MA. The bullish divergence in the RSI throws mixed signals as the Bollinger bands constrict, but low buy volume and the consistent failure by BTC to move above the daily high (red line) suggest a move to the downside.
Of course, we would love to see otherwise but the recent bearish cross of the 50-MA below the 200-MA make the possibility of such an outcome less likely.
BTC 00 appears to be on a path to $6,000 unless the technical setup changes or a bullish media story can shift sentiment. One can only hope that a move below $6,000 will lure buyers and produce a nice bounce, or better yet, a trend reversal. At this point, this is nothing more than wishful thinking.
A bullish divergence can be seen in the 4-hour RSI but all other indicators are bearish so try and curb your enthusiasm.
BTC needs to move above the daily high at $6,460 (slightly above the 23.6% Fib retracement) and the 200-MA at $6,573 in order to garner buyers’ interest.
Where do you think Bitcoin price will go this weekend? Let us know in the comments below!
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