Bitcoin is walloped by selling pressure below on Tuesday. The rising wedge pattern support spotted during the analysis yesterday was broken triggering more breakdown below the short-term support at $6,400 and the critical $6,300 support. BTC/USD has had a considerably successful week’s trading after the recovery from the pits below $6,000 commenced on the same day last week.
The selling pressure has, however, capped the gains marginally above $6,600. The price keeps losing momentum at this level, besides I termed this level as Bitcoin price hard cap on the upside in the analysis published yesterday. The pivotal $6,500 gave in to selling pressure at the opening of the trading session the previous day. Moreover, the 100-day hourly moving average also failed to stop the declines but will now offer resistance to the upside at the broken trendline support.
Bitcoin is likely to continue correcting lower in the near-term. Similarly, technical indicators continue to send negative signals. For instance, the MACD is in the negative territory and still advancing south, the stochastic had recovered slightly from the oversold but has changed direction downwards again.
The 23.6% Fib level with a high of $7,148.96 and a low of $5,941.5 at $6,200 is a strong vital support to the buyers and must not be broken to prevent more break down heading to $6,100 and $6,000. Bitcoin is trading at $6,288, but the buyers must battle to push to price above $6,300 and preferably find a support here. This will allow them to curve a trajectory to $6,400 resistance and eventually $6,500 in the medium-term.
BTC/USD hourly chart