The past week has been extremely bearish for the price of Bitcoin. Bitcoin broke below several key support levels with strong seller momentum.

Since pricing in a low below $4200 on Tuesday, Bitcoin has started recording more bullish movements as it rises back up. One of the anticipated support levels as Bitcoin declined was $4600 which was an area of important trading activity in 2017. With the strong seller momentum, this level did not provide much support, but it is providing resistance as price attempts to rise back up.

Conditions are still extremely bearish. The daily RSI trades close to historic lows, and the MACD continues to diverge to the downside, both showing strong pressure from sellers. Bullish points such as support levels are not holding, but the bearish resistance points are strongly coming in to play.

Bitcoin Daily Chart – Source: Tradingview.com

Price has now tested the $4600 resistance a number of times but has fallen below each time. The hourly 50 EMA is also trading around this point likely providing further resistance. It may not take much for another significant drop from this point, but it would seem that a lot of bullish factors would have to come into play for a price rise.

If the price does manage to rise above $4600, another significant resistance level would be expected at $5000.

Bitcoin Hourly Chart – Source: Tradingview.com

Key Takeaways:

  • Price has begun rising back up but is meeting significant resistance at $4600. Price has tested this point numerous times, and this is also where the hourly 50 EMA is trading which is likely providing further resistance.
  • If price manages to rise above the resistance point, it would likely meet further resistance at $5000.
  • Conditions are still largely bearish. It would seem that a lot of factors would have to come in to play for the price to rise from here whereas it could be very easy for another significant drop to take place.
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