Bitcoin (BTC) makes a gradual decline to the previous low of $7,000. Now traders may expect Bitcoin to rebound if the market gets a low of $7,000.
Bitcoin has been consistently fall for the past four days. Earlier on the bulls have formed a double bearish top pattern while attempting to break the resistance at $7,600. Bitcoin is gradually diminishing from $7,500 to $7,200. The market forces are bent to push the coin to the previous low of $6,800 or $7,000. The analyst should watch out as the Bitcoin may fall to either of those previous lows and rebound or fall.
However, a fall below $6,800 is a confirmation that Bitcoin has resumed its downtrend. Thereafter the price can nosedive either to the low of $6,000 or $5,500. This is not to say that the bulls have nothing at stake to fight back. The market volatility can change at any time. A bullish break at $7,200 will push Bitcoin to rally above $7,600 resistance. A retest at the $7,800 price level is possible.
The MACD is still showing a sell signal for the coin. This is because the MACD line and the signal line are below the zero line. Bitcoin will drop like a pack of cards to a low of $5500 if there is a breakdown at the support line. All the same, the coin can Jump up or rally above $9,000, if there is a bullish breakout above the downtrend line.
Key Supply Zones: $10,000, $11,000, $12,000
Key Demand Zones: $7, 000, $6, 000, $5,000
Bitcoin is falling and may reach the $7,000 support level. We expect the coin to pause or rebound. Undoubtedly, a drop below $7,000 will pose a serious threat to the coin valuation. The bulls are to defend the low of $6,800 so that Bitcoin does not go into serious depreciation.
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.