Resistance levels: $6,759, $7,363, $8,075,
Support levels: $6,118, $5,858, $4,800
BTC/USD Medium-term Trend: Bearish
The cryptocurrency is bearish in the medium term. Before the bearish trend between yesterday and today, Bitcoin had been range-bound between the resistance level of $6,759 and the support level of $6,118 over the last 30 days. The BTCUSD pair has formed a “pennant” pattern within the range-bound.
It has been trading within the pattern’s upper and lower trend lines. The pattern exists within the range bound of the resistance level of $6759 and the support level of $6118. It was at this range-bound zone that the price pulled down to the lower level. Today, the cryptocurrency has broken the lower trend line of the pattern.
As the price broke this trendline, there are indications it will find its low at the support level of $6,118. If the bears defend this zone and the price bounces back, traders should initiate long trades and place stop-loss orders below the $6,118 level. You can exit your long trades at the resistance of $6,759 or when the price reverses.
On the other hand, if the $6,118 level does not hold, the BTC price will attempt to reach the lower support level of $ 5,858. However, the RSI (14) is below the 25 level, and the signal line points north, indicating a buy signal. The price of Bitcoin is below both the 10-day and 50-day EMAs, indicating a downtrend.
BTCUSD Short-term Trend: Bearish
On the 1-hour chart, the BTC price is in a bearish trend. The BTC price is falling towards the $6,118 low and is below both the 10-day and 50-day EMAs. Meanwhile, the Relative Strength Index (RSI) at period 14 is at 25, indicating the market is oversold and suggesting bulls may take control.
