- Bitcoin might have the third consecutive day of losses.
- Experts believe that the strong support comes at $6,500.
Bitcoin has recovered from Thursday’s low of $6,790 to trade at $6,950 by the time of writing; however, the digital coin No.1 still stays below $7,000 handle, which darkens the short-term picture. BTC/USD is 1% lower on a daily basis and slightly down since the beginning of Friday. It seems that Bitcoin has topped out at $7,128 and now is bracing for the third consecutive day of decline.
Lennon Sweeting, director of institutional trading at Coinsuqare Capital, believes that the bearish trend is far from over as the recent recovery attempts are caused by short covering and speculative positioning.
“Bitcoin is still holding the upper end of the range. A lot of what we saw was short covering, but at the end of the day, shorts are still at elevated levels and we haven’t seen the bear market turn yet.”
He expects hat BTC/USD might find a good support at $,6,500, where a new buying interest might appear.
Bitcoin’s technical picture
BTC/USD has lost over 3% of its value from the recent peak $7,128 touched on Wednesday. Moreover, the coin settled below $7,000 handle and broke DMA50, which is definitely a bearish signal for short-term traders. The next downside target lies at $6,900, created by DMA100. It is followed by 23.6% Fibo retracement at $6,800 with Thursday’s low and downside trendline right below this level.
On the upside, $7,000 is the first point in the bulls’ checklist. Once it is cleared, the upside may be extended towards $7,128 and $7,400 (38.2% Fibo retracement).
BTC/USD, the daily chart
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