Bitcoin Retests $6K After 10% Drop; Is $5k Dump Inevitable?

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Bitcoin Retests $6K After A 10% Drop; Is $5k Dump Inevitable?
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Bitcoin has finally made a dramatic move. As anticipated by most, it has been a drop. In the last 24 hours, Bitcoin has shed nearly 10%. This has seen Bitcoin fall from highs of $6,800 to test the $6K support. For now, this crucial support has held and Bitcoin bounced to climb to the $6,200 price range.

The latest drop has been a sign that Bitcoin is looking for further support below key ranges. While this could allow for further entry for buyers at a discount, it puts Bitcoin at risk of spiraling down. If the bulls lose control, we could see a retest of the $5K long term support.

Analyst CryptoBirb is one of a number of analysts who thinks that Bitcoin is destined to retest the $5K position. According to a recent post, as long as Bitcoin is trading below $6,600, the digital asset is bearish in the short term.

For now, Bitcoin is stable. This will continue as long as Bitcoin stays above $6K. Below this, we could see panic selling which could end with Bitcoin at $5K support.

A bullish scenario is still possible if Bitcoin can bounce higher and climb back above $6,500. This could ignite FOMO buying with anticipation of a breakout above $6,800 and a test of highs of $7K.

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ETH And XRP On Different Paths

Altcoins have also recorded a big drop in prices and market dominance in the last 24 hours. Top altcoins have lost between 3% to 10%. This has seen the total market cap which has been above $185B fall to around $175B at the time of press. Bitcoin dominance has climbed above 65%.

XRP which we reported was entering a bullish pattern is one of the coins holding up well. Though it has dropped from its yesterday’s high of $0.17, it is sitting above $0.16. The bulls will look to avoid a drop to the $0.15 lows.

Ethereum, the largest altcoin, which is on a bearish pattern has breached key support dropping below $130 at the time of press. In the mid term, this trend could see the coin retest the $120-$125 range.


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The views expressed in the article are wholly those of the author and do not represent those of, nor should they be attributed to, ZyCrypto. This article is not meant to give financial advice. Please carry out your own research before investing in any of the various cryptocurrencies available.