Bitcoin Sinks as Bulls Turn Down From $6,000 Resistance

The bears are unrelenting as they push Bitcoin to the bottom of the chart. In the last bearish impulse, Bitcoin dropped to a low of $4,607 and then moved up to resume consolidation above $4,500. The price movement has been relatively stable in the past five days as the price fluctuates between $4,500 and $5,500.

Nonetheless, in the five days of consolidation, the upward move by the bulls was scuttled at the $6,000 resistance. The bulls find penetration difficult on two occasions at the $6,000 resistance. Bitcoin lacks buying at a higher level. The implication is that the current consolidation may continue. Alternatively, the bears may use that as an advantage to further depreciate Bitcoin. On the downside, if the bears break $4,607 support, the market will reach a low of $3,800

Bitcoin Indicator Reading 

As Bitcoin continues its consolidation, the coin is still below the 20% range of the daily stochastic. BTC is still in the oversold region expecting the emergence of buyers in the oversold region. Meanwhile, the stochastic bands are pointing downward because of the current downward move.  

Key Resistance Zones: $10,000, $11,000, $12,000

Key Support Zones: $7, 000, $6, 000, $5,000                      

What Is the Next Direction for BTC/USD?

Bitcoin may possibly face further selling pressure with the upward move facing an uphill task. BTC is in a period of consolidation but selling pressure is more at the lower price range. In other words, a break below $4,500 will sink BTC to the low of $3,800.

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.