Bitcoin plunges below $7,000, and stands the risk of further depreciation. The coin may have a free fall except when it falls and find support at the $6,500. As the coin fumbles southward, it may not face serious resistance as it approaches $6,500. Attention will be focused on the critical support of $6,500. Two things will happen at the critical support level.
Bitcoin will pause at the critical support and resumes a sideways move between $6,500 and $7,800. Conversely, the coin will face an unavoidable depreciation at the critical support level. However, if the latter happens, BTC will depreciate to the lows of $6,000 or $5,500. The breaking of critical support is an open door for downtrend resumption.
The market is declining towards the support of the channel. BTC will have a sharp drop once the support line is broken. The overall trend is bearish according to the MACD indicator. This gives us a sell order.
Key Supply Zones: $10,000, $11,000, $12,000
Key Demand Zones: $7, 000, $6, 000, $5,000
BTC is heading southward towards the demand zones. At the critical support, Bitcoin may hold for a bounce-back or a sideways move above $6,500 demand zone. Bitcoin may pause and fluctuate between $6,500 and $7,800 price level. Alternatively, the support may be breached which will cause the coin to further depreciation. The pending rejection may fall to a low of $6,000 of $5500.
Disclaimer. This analysis and forecast are the personal opinions of the author are not a recommendation to buy or sell cryptocurrency and should not be viewed as an endorsement by CoinIdol. Readers should do their own research before investing funds.