The leading digital cryptocurrency in the market, Bitcoin, is gradually falling to an important support level, $6,900, after it failed to capitalize on weakening the bearish wave on Wednesday.
The Price Struggle Continues
There was a doji candle on the cryptocurrency technical chart on Sunday which signaled a bearish exhaustion short-term. Even at this point, a corrective rally is not visible long term as Bitcoin closed at $7,143 after running into offers at $7,400.
Today, the price continued to go down and Bitcoin hit a $7,040 7-week low in the early hours of trading. Bitcoin was trading at $7,130 at the time this piece was written. The fall in price shows that a sell-off from the $9,990 high is imminent. There might be a drop to as low as $6,900. The Bulls will need to defend this level at all cost or the price will go to the $5,000 level.
There was a bearish outside-day candle indicating a bullish-to bearish change in trend. However, further analysis should that there was still a rival continuation of the $9,990 sell-off.
Considering the historical data for BTC, anytime the sailing chart falls below the 30.00 relative strength index, the price of Bitcoin climbs. However, this may not be the case. The bears are in charge of the market long term.
BTC may dip into the $6,900 level within the next 24 hours. Within the last 24 hours, Bitcoin has created lower lows. However, the relative strength index indicates a corrective rally.
The last line of defense before $5,000 is the $6,900 level. If the bears push toward this level, there might be a slide down to $5,400. There might also be a minor corrective rally to $7,300 but that will be short-lived.
The only way to abort the bearish wave is for the price to break above the 50-week moving average at $7,702. A break above the recent high of $9,990 will be required to start up a bearish-to-bullish change in trend.