The markets have continued their bearish trend this week with strong sell-offs taking place in Altcoins. Although Bitcoin has also been depreciating, it is stable when compared with the sharp downward movements we have seen in the altcoin markets. Many altcoins have experienced double-digit downturns over the past 24 hours, even some of the most popular projects. Bitcoin’s dominance is back near 60%.
Today’s drop in Bitcoin has been on low volume and price, and RSI may be forming a slightly higher low which would be an indication that we could see further upward movement. However, on a bearish note, the MACD is still diverging from the centerline to the downside showing the momentum is still with the sellers. Once the MACD begins to converge back towards the centerline, it will be indicative that the momentum will be starting to shift back towards the buyers.
Bitcoin has been holding at support around $6240, but the moving averages have been providing some resistance to any upward movements. With the 50EMA and 100EMA approaching where price action is currently trading, we are likely to see either an upward movement which brings price action above these moving averages or a downward movement below the support level.
Next support is expected around $6100. Overall, the outlook is currently neutral. Another drop will be likely to form a lower low and a continuation of the downward movements we have been seeing.
- Price and RSI currently forming a higher low but a significant downward movement is likely to undo this.
- MACD continues to diverge to the downside showing momentum is currently with the sellers.
- Price is holding at support around $6240, but the moving averages are acting as resistance.
- Outlook is currently neutral.
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