- Bitcoin technical indicators show that buying power is present; retracement towards $6,100 is possible in the short-term.
- A strong support above $6,000 needs to be established; otherwise, BTC/USD is still in danger of declines towards $5,500.
The cryptocurrency market has again proved that it’s very unpredictable. Bitcoin seemed to be consolidating above $6,200 during the trading on Monday. However, fresh declines occurred as the price broke the life-saving support at $6,000. Last week the U.S Security and Exchange Commission was believed to be the reason why the market took a trip far downstream as the investors reacted to its decision to postpone BTC ETF verdict to September 30. However, this week, the regulation space seems quiet and the catalyst for the ongoing selloff remains unknown.
Well, regulation and Bitcoin ETF aside, Bitcoin kicked the trading today, Tuesday 14 with fresh declines. BTC/USD rejected the support at $6,200, $6,100 and the life-saving support at $6,000 did little to stop the slide. It has traded lows of $5,891.50 on the day but there is a slightly bullish trend in progress at the time of press. Bitcoin has recovered from the ashes below $6,000, while the next resistance target is at $6,100.
Bitcoin price has also encountered resistance at the 23.6% Fib retracement level taken between the highs of $6,545.86 and the lows of $5,921.42 at $6,067.92. Subtle lower corrections are underway and testing the weak support at $6,020. If the declines continue, the support at $6,000 will come in handy to stop the movement to the south. However, if the support is broken, it could trigger further movement towards $5,900. Similarly, the volatility status in the market means that $5,500 is within reach in the medium term unless the buyers can gather strength to form a strong support above $6,000.
It is also likely that the drop is simply as a result of technical levels being broken. For instance, yesterday’s slide below the trendline support triggered more breakdown towards $6,300 support and the successive breaking of support levels covered above.
We will continue updating this analysis to help you understand the reasons behind the declines as they unfold.
BTC/USD 15′ chart
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