Price Analysis

Bitcoin (BTC) Drops Below $7k; Expected to Bounce Back from $6.1k

Bitcoin: Short-term Bearish Trend Remains Intact

Bitcoin News

The short-term outlook of Bitcoin against the US Dollar is bearish, and it is moving towards key support area and weekly 78.6% Fib Level. Overall weekly prices are still above 200 days SMA denoted by the red line in the below-given charts.

Bitcoin Price Prediction

Weekly BTC prices have fallen below 61.8% Fib level, i.e., $7219 and moving towards the key support area at $6100. The last support is at $5415, which is weekly 78.6% Fib level and almost coincides with the 200 days SMA denoted by the red line in the below-given chart. Earlier Bitcoin price got rejected by the 9 days SMA (blue line) and the trend line, BTC prices will go down for the final time towards the key support or 78.6% Fib level before bouncing back and breaking out of the trend line.

Bitcoin News Today
Bitcoin Price Chart by TradingView

RSI is at 40.82; hence, more room to go down to reach the oversold area in the weekly chart as RSI is closely following the trend line.

Bitcoin Price Today

Laying Ichimoku Kinko Hyo over the below mentioned weekly chart following things can be observed:

  • Bearish TK cross above the Kumo; short-term bearish signal
  • BTC price is below the Tenkan Sen, Kijun Sen, and Kumo; bearish
  • Chikou Sen is below the price candles and approaching the key support at $6100

BTC News Today

Conclusion: Short-term bearish signal till Bitcoin price reaches the key support or weekly 78.6% Fib level support.

Daily prices got rejected by the 9 days SMA, and 21 days SMA denoted by the blue line and white line, respectively. 49 days SMA, which is denoted by the green line, is coinciding with the trend line as can be seen in the below-given chart. RSI of the BTC is at 33.33 and it has more room to go down to reach the oversold region, Stoch RSI is in the oversold region.

BTC Price Today

Conclusion: Daily and weekly prices are indicating that the price of Bitcoin will go down towards the key support area towards $6100, where the coin is expected to bounce back.

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Ruti Vora

Ruti regularly contributes in-depth news articles for leading cryptocurrencies. She contributes technical chart-based price updates and analysis pieces on world's leading digital currencies. She holds graduate degree in journalism.

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