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$6k looms close for Bitcoin as price suffered a steep decline yesterday from around $6550 to $6100. Support around $6100 is currently holding the price but with this being the third test around this level, it is questionable whether it can hold much longer.

Today’s drop is on low volume with the RSI approaching oversold levels, but with the overall sentiment being strongly bearish, a price rise might not go far. In the case of a drop, there should be some significant support levels in play at $6000 and the all-time low of 2018 at $5750.

Bitcoin Daily Chart
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One factor which is the favor of the bulls is that bitcoin futures are no longer trading at a premium. This means that selling pressure provided by miners looking to lock in a profit through the selling of futures contracts is no longer there.

Spot & Futures Prices Chart

Price has been trading in a range around the $6100 mark since the significant drop yesterday. Price tends to trade in a range after a significant drop. In the event of a rise, both the 50EMA and 100EMA have acted as significant resistance levels for the price of Bitcoin. Most price rises have been on low volume, and after two weeks of steep losses, many traders have a bearish outlook on the market. The MACD is crossing its signal line to the upside, a bullish signal but amid the bearish outlook, this is likely to have little effect.

Bitcoin Hourly Chart

Bullish Scenario:

  • Volume is dropping off with RSI approaching oversold levels
  • Futures no longer trading at a premium reducing the amount of selling pressure in the market
  • Meeting significant support levels at $6100, $6000, and an all-time low of 2018 near $5750
  • MACD crossing its signal line to the upside

Bearish Scenario:

  • Two weeks of steep losses leaving a lot of traders with a bearish outlook
  • Strong resistance recently at the hourly 50EMA and 100EMA
DISCLAIMER: Investing or trading in digital assets, such as those featured here, is extremely speculative and carries substantial risk. This analysis should not be considered investment advice, use it for informational purposes only. Historical performance of the assets discussed is not indicative of future performance. Statements, analysis, and information on blokt and associated or linked sites do not necessarily match the opinion of blokt. This analysis should not be interpreted as advice to buy, sell or hold and should not be taken as an endorsement or recommendation of a particular asset.

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