Bitcoin Impressively Trades Above $6.5k; Yet Faces a Notable Sell-Off

Bitcoin breaks above the major resistance at $6,000 and has hit an intraday high at $6,990 after a week of a static bearish move. Previously, the coin had a despairing break below $4,000 when it recorded a fresh yearly low around $3,800. However, at the time of writing, BTC bulls are seen locking around $6,500, and they are likely to face major resistance amidst the moderate volatility of the market.

Moreover, the world market has been facing a dearth of steady momentum due to the pandemic outbreak, and the economy is on a shutdown mode as the fear outweighs. Amidst this, the bullish breakout above $6k and $6.5k is likely to be an illusion until we experience the upcoming trading days.

Bitcoin Price Analysis

Bitcoin Chart
Bitcoin Price Chart by TradingView

Analyzing the price movement of Bitcoin against the US Dollar on a 5-hourly chart, we see that the coin has been on a continual spike over the past 24 hours. After a massive decline in the previous, BTC to USD price had found major support around $4,000, and as per the current trading momentum, the coin has hit above the major resistances at $5.5k, $6k and $6.5k. However, as per Bitcoin predictions, the 20-day Bollinger Bands laid, the coin is likely to face moderate volatility.

Although Bitcoin is nicely trading above $6k, the market for the coin is experiencing a strong sell-off as it nosedived after hitting resistance around $7,000 at $6,990. The coin is retaining steady support from the 200-day daily MA around $6,300.

Technical Indicators

The technical indicators laid show a negative crossover as the price of Bitcoin is having a bearish divergence due to volatile intraday movement after hitting a weekly high at $6,990.
Similarly, the RSI of BTC is at 37.93 and facing a selling pressure after hitting a fresh weekly high and nosediving thereafter.

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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