The Bitcoin Bears have really come out swinging after a two-day battle with the Bulls. It may even push the price down to $7,000. The currency has been somewhat restricted for quite some time, with the range being between $8,140 and $7,700. This has been the case since the 27th of March and this is according to the Bitfinex data. It should be noted that at one point, it looked like the Bulls had found a stable footing after an upside break of the trendline. The triangle breakout also happened, meaning that the whole situation was very unstable.
Bitcoin wasn’t able to get through the supply at around $8,000 during the United States session and this gave the Bears the chance to take over. The BTC fell way below $7,700 at 04:00 UTC today. BTC is changing hands at $7,530 on average and the price is across various exchanges. This is going to be represented by the Bitcoin Price Index and it is down by 5% so far.
The relative strength index or the RSI is showing a flag breakdown from the bears and this adds a level of credence to the Bearish setup that is currently on the price chart.
The BTC are looking to set a test against $7,260 to $7,240. In addition to this, the Fibonacci trace from the rally on February 6th stands at 78.6%. The 5-day moving average really is toward the Bears and this ultimately means that it is sloping downwards. It has also been noted that the RSI is becoming bearish as well. So far, the BTC is stuck in a falling channel. You have much lower highs and lower lows as well, and this could drop to $6,100-$6,0000. This is especially the case if the cryptocurrency is not able to find acceptance below the number of immediate support. Strong support is currently being shown at around $6,600 and it has even been said that the Death Cross could happen at some point this week. This is especially the case if the BTC happens to fall to $7,000, but a lot of people believe that this Death Cross could actually be a blessing in disguise. The main reason for this is because it could aid the Bulls as it is often followed by a signal for the Bears.
The BTC looks to be testing at $7,240 and it could even break lower than $7,000 as well. If this did happen then it could push the 50-day MA below the 200-Day MA. This is otherwise known as being the Death Cross. With the lagging indicators that are present at the moment, it doesn’t look like the Death Cross is going to do any damage. The BTC may actually be able to avoid a weekly close and this will be at around $6,600 if it does happen.
When you look at the higher side, a daily close at $8,135 or above would certainly abort the idea of a bearish view.