The bitcoin downtrend still remains valid as price continues to produce lower lows and lower highs. Since 25th of July, BTC has lost over 30% to the US Dollar, while price moved from the $8500 down to the recent low at $5850 area.
At the same time strong resistance has been formed at $6500, which is confirmed by the 361.8% Fibs applied to the corrective wave up after the uptrend trendline breakout. The support is seen at $6000, which at first glance seems to be broken, although daily close stays above this key level.
Currently it would be important to watch two levels, first is a $6k support and second is the $6.5k resistance. If the resistance is broken, together with the 200 Moving Average and the downtrend trendline, it could be a strong signal of a potential trend reversal, resulting in a growth towards the $10k psychological resistance. But there will be a daily close below the recent low at $5850, the downtrend is very likely to continue, at least towards the next support at $5500.
There are multiple scenarios of the price development in the coming days, but as has been mentioned already, key support and resistance levels should be watched very closely.
At the same time strong resistance has been formed at $6500, which is confirmed by the 361.8% Fibs applied to the corrective wave up after the uptrend trendline breakout. The support is seen at $6000, which at first glance seems to be broken, although daily close stays above this key level.
Currently it would be important to watch two levels, first is a $6k support and second is the $6.5k resistance. If the resistance is broken, together with the 200 Moving Average and the downtrend trendline, it could be a strong signal of a potential trend reversal, resulting in a growth towards the $10k psychological resistance. But there will be a daily close below the recent low at $5850, the downtrend is very likely to continue, at least towards the next support at $5500.
There are multiple scenarios of the price development in the coming days, but as has been mentioned already, key support and resistance levels should be watched very closely.
Comment:
Resistance broken
Comment:
Uptrend begins