Home Bitcoin Sea of Red: Bitcoin Price Dives Sharply Below $6500

Sea of Red: Bitcoin Price Dives Sharply Below $6500

4 min read

The worth of Bitcoin fell sharply going into the each day shut, marking one other bearish begin to the week. With costs plummeting firmly again in direction of earlier lows, buyers and merchants alike are as soon as once more questioning how a lot bullish resolve there’s within the cryptocurrency market.

Daily Chart

Bitcoin worth 00 went into Tuesday encouragingly bullish, with Asian and European markets bidding costs up 3% to highs of $7,150. The low quantity rally was later rejected. A pointy selloff ensued pushing costs again all the way down to under $6,700, representing a blow to the bulls who hoped that $6.800, the 61.8% Fibonacci retracement of the July bull, would act as a key stage of help.

Bitcoin is now firmly into the important worth vary, which has beforehand confirmed to be sturdy help, with $6650-$6800 being a key space the place patrons should enter the market to keep away from Bitcoin making new lows.

1 Hour Chart

Bitcoin is now firmly into the critical price range which has previously proven to be strong support, with $6650-$6800 being a key area where buyers must enter the market to avoid Bitcoin making new lows

Looking on the hourly chart, there are early indicators of a bullish reversal, with a divergence between worth and each the RSI and CMF indicating that promoting momentum has been weakening as the worth reached its lows. Despite the divergences on the decrease time frames, an extended interval of consolidation is prone to be wanted earlier than a convincing low is discovered.

The subsequent few hours will show to be essential with $6600 being an space the bulls have to defend.

Weekly Chart

Taking an Early look at the weekly chart, trading volumes continue to trend lower in the market.

Taking an Early have a look at the weekly chart, buying and selling volumes proceed to development decrease out there. This illustrates that retail buyers are nonetheless but to return to the market and are doubtless not to take action till the worth begins to maneuver favorably as soon as once more.  The RSI and MAC-D are nonetheless trending up which once more means that downward stress on worth is slowing, however this stress could quickly return if new lows are discovered.

[Disclaimer: The views expressed on this article will not be meant as funding recommendation. Market knowledge is offered by BITFINEX. The charts for evaluation are offered by TradingView.]

What are your ideas on the Bearish begin to the week? Let us know within the feedback under.

Images courtesy of Shutterstock, TradingView.com

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