The price of bitcoin continues to trade in a month following sharp declines. The BTC/USD currency is still at risk falling below $ 4,000.
Bitcoin’s price experienced sudden sharp fall
Investors, crypto money enthusiasts, and especially those in the Bitcoin community are asking themselves a hard question, What will happen after an overwhelming drop on Wednesday? The market has a leading crypto, plunged into the sea of red waters and traded under $ 6,000 base support. With this latest price movement, the BTC/USD parity fell for the third time below the critical $ 6,000 level in 2018. However, unlike the first and second Events, Bitcoin fell to a level of 5.357 dollars this time.
A number of analysts have recently expressed their views on the price of Bitcoin, which has dropped below $ 6,000. Yesterday’s decline came earlier than expected, but the price broke the old support at $ 5.750 and boosted the aforementioned loss of value earlier.
What direction is the Bitcoin price now?
The price of bitcoin is now stuck in a resistance range where the $ 5.700 upper limit is a barrier to recovery. On the other hand, bitcoin is supported with the lowest level of 5.357 dollars (December support). The hourly chart’s RSI is floating in the overbought territory on the 4-hour chart’s slow stochastic. In addition,for the price rise, the resistance level of 5.638, $ 95 has to be exceeded (price squeeze barrier). If Bitcoin does not go above this level before the end of this week, it is likely to fall below the current low levels. The second level of resistance is $ 6,000.
Initial price support in the direction down to $ 5.357. Bitcoin bulls should keep the price above that level, otherwise the price is at risk of falling to $ 4,000. However, buying activity is still quite high, showing higher levels compared to yesterday’s MACD indicator. The Relative Strength Index (RSI) is also in a positive range, preventing entry into oversold territory.