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Bitcoin has been holding near the $8000 mark for a few days now, but it seems to be drifting to the downside. Is Bitcoin on its way back to $6000, or is $7000 the lowest we will see Bitcoin go?
Highlights:
- Bitcoin aiming for $7000
- Selling pressure picking up?
- $6000 still a possibility
$6K revisit?
A quick look at the daily shows us that we are still trading within this sideways channel between $8000 and $7000. The RSI is pointing downwards, but with a value of 61 we can't call it bearish just yet. If the RSI manages to hold above 60, then we should expect the bullishness to continue by either pushing to new highs, or simply holding the $8000 level a bit longer. However, it's more likely $6k has to be revisited before we continue to new highs.
We also have the 200EMA which can act as support on the way down, but for now it seems that price and the 200EMA will reach $6k at the same time.
BTC/USD chart provided by Tradingview
Slightly bearish?
On the hourly we have entered the bear zone on the RSI. When RSI trades between 40 and 30, it indicates that selling pressure is picking up and that large selling volume will take place. $7000 will be the first stop on the way down and BTC might decide to rest there for a few days before it continues its way down to $6000. This is no reason to be bearish for the long-term, as a retracement would be a healthy outcome of weeks of strong Bitcoin performance.
BTC/USD chart provided by Tradingview
For now it seems that only some very good, unexpected news can turn things around for Bitcoin. Everything points to BTC wanting to say hello to $6000 first, before it can think of upwards momentum again.
Disclaimer: Keep in mind this not investment or trading advice, just the opinion of our analysts. As always, do your own research, make your own decisions.