Yesterday, the bears showed their supremacy over bulls at the $7,000 overhead resistance. Bitcoin rebounded at $6,797 to reach a high of $7,200. Immediately, the bulls were resisted as price slumped to $6,600.
Buyers pushed above $6,700 and resumed consolidation. Undoubtedly, as the pair is now in the bearish trend zone, there is the certainty of a further downward move.
At the moment, the price is consolidating above $6,700. Bitcoin is likely to drop to the next support at $6,400 if the selling pressure resumes. Subsequently, the bearish momentum can extend to a low of $5,900. There is also the argument that the $6,700 support can hold. The pair will now have the opportunity to rise to revisit the high of $6,900. Bitcoin will recover from the downward move if the price rises to the $6,900 level.
Bitcoin was earlier in the overbought region when it was above the 80% range. Sellers have emerged as the market continues its downward move. The pair is below 80 % range as the market falls. Incidentally, Bitcoin will sink if it falls and breaks below the resistance line.
Key Resistance Zones: $10,000, $11,000, $12,000
Key Support Zones: $7, 000, $6, 000, $5,000
Bitcoin's upward move is doubtful as the market falls into the bearish trend zone. The bulls’ ability to defend the $6,700 support will determine if the bears will continue with the downward move. The market is likely to fall as it is nearing the breakdown point.
Disclaimer. This analysis and forecast are the personal opinions of the author that 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.