Bitcoin Price Analysis: BTC/USD V-shaped reversal unsustainable, breakdown to $5,000 lingers

  • Bitcoin price upward momentum fails to break the critical resistance a $7,000.
  • BTC/USD sharp V-shaped reversal from recent lows under $4,000 seems unsustainable amid increased bearish grip.

Spot rate: $6,699

Relative change: 9.48

Percentage change: 0.15%

Trend: Bearish

Volatility: Low

BTC/USD daily chart

BTC/USD price chart

Bitcoin price is vulnerable to losses likely to test $5,000 as long as it stays under the critical $7,000 zone. According to an analyst on Twitter, MacroCRG, the sharp V-shaped recovery from the recent fall under $4,000 is not sustainable. In his view, Bitcoin could make a downturn back to $5,000 before a formidable recovery is achieved.

The building bearish momentum is emphasized by the 50-day SMA double-cross under the 200-day SMA. This shows that seller influence over the price is growing. Moreover, market volatility is still high amid the chaos caused by the Coronavirus pandemic. I expect fresh interest in BTC at a lower price between $5,000 and $6,000 as investors buy low in readiness for a rally post Bitcoin halving.

Resistance one: $6,832 – Highlighted by the previous high 1-hour, Bollinger Band 15-minutes upper curve and the 61.8% Fibonacci one-day.

Resistance two: $6,972 – Highlighted by the previous week high and the pivot point one-day resistance one.

Support one: $6,692 – Highlighted by the BB 15-mins lower, SMA 200 15-mins, SMA 50 1-hour and the previous low 4-hour.

Support two: $6,482 – Highlighted by the BB 4-hour middle curve and the previous low one-day.

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