After a week of hard losses across the cryptocurrency market, market leader Bitcoin is now trading under $7k price once again. It was just a few weeks ago that the price of Bitcoin blasted up through the $6850 resistance level but it is now approaching this level from the opposite side. The decline has slowed as it approaches this level again which is giving traders some respite from the consecutive steep drops.
The current drop has been on lower volume but with the MACD approaching a centreline crossover to the downside, this would be a bearish signal which could provide enough momentum for a break below the $6850 level.
The 50EMA on the hourly chart has been acting as a resistance point making a significant move up less likely. On the hourly chart, we can also see several tests of the $6850 level. Each retest makes this level weaker with a greater possibility of a breakthrough each time. This is because on each retest, there are fewer buyers to hold the price up. In the event of a break above the hourly 50EMA, there is also the 100EMA and 200EMA likely to act as further resistance. The 100EMA is currently trading around the $7250 mark and the 200EMA is currently trading around $7400.
- With this drop being on low volume, the momentum of the drop is backing off
- Price action is approaching a key support level
- Hourly EMA’s acting as resistance
- Momentum is with the bears
- Each retest of $6850 makes the area weaker
- MACD approaching centreline crossover to the downside
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