- BTC/USD has dived below $7,000 as the recovery momentum lost traction.
- The next support awaits BTC on approach to $6,500.
Bitcoin has broken free from its narrow range and touched the intraday low of $6,890. At the time of writing, BTC/USD is changing hands at $6,942, down over 3% since the beginning of the day. A recovery above $6,900 sparks a hope that the sell-off will be temporary; however, we will need to see a sustainable recovery above $7,000 to avoid another bearish wave in the short run.
On the downside, once $6,900 is cleared, the previous week’s low of $6,787 will come into focus. It separates us from forming a deeper decline towards critical support created by $6,500.
On the upside, once above $7,000, BTC/USD will proceed to the beset barrier created by a confluence of SMA50 (Simple Moving Average), SMA100 and the middle line of 4-hour Bollinger Band at $7,100. Bulls may have a hard time taking down this resistance. Once it is out of the way, the upside is likely to gain traction with the next focus on $7,200 ( the upper line of 1-hour Bollinger Band).
BTC/USD, 1-hour chart
Share
