Bitcoin [BTC] Price Reverses Weekend Gains and Heads Towards Lower Low
Bitcoin’s weekly chart shows its price is trading in a historic area of support and resistance. A break below the $3000 support line opens up the possibility of Bitcoin declining to $2000. Equally, BTC may bounce at this support area like it did last year. Bitcoin has not reached the $3000 area yet and is currently trading at $3338, but it is an area worth watching.
The weekend was a brief bullish respite to the downward trajectory that the cryptocurrency markets have been on. Market leader Bitcoin has returned to decreasing at the start of this week and has already reversed the weekend’s bullish movements.
While the weekend saw Bitcoin climb from around $3350 to briefly over $3600, the price has dropped back down and now trades just above $3300. The 2018 low is just above $3200, and it looks likely that price will continue to drop to this point and form a lower low.
The hourly chart shows short-term momentum is on the side of the sellers increasing the possibility that price will continue moving to the downside and form a new lower low. The RSI and MACD are decreasing reflecting momentum being on the side of sellers.
A downward trendline has also been forming since the brief bullish movements over the weekend. Price is likely to meet some resistance at this point if it rises from here. If the price continues to drop, the key support level to monitor is $3000 which was both an area of key trading activity in 2017 and a key psychological trading point.
Overall, the outlook for the market leader is bearish. Trading near 2018 lows increases the likelihood that Bitcoin will drop back down to this point and form lower lows.
- Bitcoin reverses bullish movements recorded over the weekend and trades close to 2018 lows.
- Likely that Bitcoin will continue to drop and form new 2018 lows. Momentum is on the side of sellers with both the MACD and RSI decreasing.
- Downward trendline forming on the hourly chart since the weekend rise. Likely to act as some resistance in the event of upward movements.
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