Bitcoin broke below the $6,235 support and is now testing the $6,115 support. This is a key area that needs to hold. If price decisively breaks below $6,115 (especially if the prior $6,040 low is taken out), it will likely drop to at least $5,800.
The 4 hour RSI is extremely oversold. This suggests a possible small bounce. That said, with the overall chart looking bearish, I wouldn’t try and capitalize on it until we see more signs of a bottom.
Zooming out on the weekly chart, we can see a strong demand zone between $5,775 and $5,450. There are likely many buy orders sitting in that area. If price does break down, this is where I’d have buy orders stacked and waiting. Just be sure to have a very tight stop-loss. If $5,450 is broken, price could quickly drop to $4,500.
In today’s video analysis I discuss, key areas to watch, trading strategy, short term price movement and so much more. I hope you find it helpful.
I hope this has been helpful. I’d be happy to answer any questions in the comment section below. Until next time, wishing you safe and profitable trading!
Disclaimer: I am NOT a financial advisor and this is NOT financial advice. Please always do your own research before investing.