Bitcoin Price Rejects $6.9K, But Is a Correction Now Imminent?

cointelegraph.com
4 min read
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Bitcoin price is becoming bearish on shorter timeframes as global markets are still pricing the coronavirus pandemic and government stimuli
The price of Bitcoin (BTC) has shown a strong surge in the past weeks, as the price rallied from $3,750 to $6,900. However, the crucial $6,900 level wasn't broken to the upside and confirmed as resistance. A similar move occurred on the equity markets, as the United States' equity markets surged 25% in one week, but saw a sharp selloff of 4% in the last trading hour, going into the weekend.

These movements lead to the general question: is there more blood to come for Bitcoin and crypto?

Crypto market daily performance. Source: Coin360

Bitcoin price can't break $6,900

The daily chart is showing a clear rejection at the $6,900 level, which is generally not a bullish perspective to look for. For bullish momentum, this area at $6,900 needed to be cleared, through which targets of $7,800 and $9,200 were back on the table.

BTC USD 1-day chart. Source: TradingView

However, the breakout didn't occur, and therefore the price is now seeking support levels. Main areas to watch for are the $5,600-5,800, $4,750-4,900 and $4,250-4,400. All these zones are substantially higher timeframe support levels and should be used for potential long opportunities.

On the upside, the resistances are easily found through levels too. These levels are $6,350-6,400, $6,550-6,575 and $6,850-7,000. Breaking through the last resistance at $6,850 would certainly reintroduce bullish momentum.

Weekly timeframe rejects at 100-Week Moving Average

BTC USD 1-week chart. Source: TradingView

The weekly timeframe is indicating a clear picture. The resistance is the 100-Week MA at $6,900, the support levels are found at the 200-Week MA ($5,500-5,700) and 300-Week MA ($3,900-4,000).

Given that the price harshly rejected from the 100-Week MA, further downside is likely to be expected from the markets.

But what does this chart tell us more? Well, markets in general mature and take longer to reach their new peak after the previous cycle. This statement means that the current cycle will take longer…
Michaël van de Poppe
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