Price Analysis

Bitcoin (BTC) Nosedives Around $6k; Major Support Lies at $5.8k

Bitcoin experienced the most anticipated fall as it retests around $6k and $6.1k after accumulating above $6.5k.

Well, you would wonder, how was this an anticipated fall of BTC. Aligning the analysis done two days back, we were quite ready for a dip sooner or later as the coin experienced a “death crossover,” and it was just yesterday when the 20-day Bollinger Bands laid squeezed to hint towards a negative price explosion embraced by a 50-day crossover above 200-day crossover.

Bitcoin Price Analysis

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BTC/USD Chart By TradingView

Analyzing the price movement of BTC/USD, we see that the coin experienced a freefall after days of price accumulation above $6.5k. That said, the coin readily lost the support from 50-day and 200-day MA on the intraday chart. This has also led the Bitcoin to recede below 38.20% Fib Retracement level, where the BTC recorded a weekly lowest around $6k. The 20-day Bollinger Bands laid are again seen squeezing, and we are likely to hit another bearish flow as per the current momentum and economic situation. Therefore, the number of short positions is likely to ramp up amidst the deeper global crisis. Having said that, the major support to watch out for lies at $5.8k and $5.5k, and an overt move below $6k will lose all the gains fetched.

The technical indicators are drawing quite a volatile image as the MACD turned bearish when the coin retraced around $6,086 after price accumulation. However, the bullish move happened to be effortless as the MACD crossed above signal line as Bitcoin price gained back its lost momentum just to hit around $6.1k and now hovers at $6.2k.

Similarly, the RSI of the BTC has also risen above the oversold region below 30 as the price consolidates slightly and lies at 53.61.

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Mehak Punjabi

Mehak Punjabi is a post graduate in MBA with specialization in Finance and has joined CryptonewsZ with a skill building view in the world of cryptocurrency and blockchain. She is dynamic and a quick learner with a hold on financial analysis.

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