Market Bloodbath as Bitcoin [BTC] Price Continues to Drop

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Bitcoin has dropped from around $7400 to $6400 in the space of just two days, an over 13% decline. Price met resistance yesterday around $7400 and underwent a sharp drop from this point. Yesterday’s daily candle was a bearish Marubozu candle. A Marubozu candle is one which has a long body with little or no wicks showing strong directional movement in one direction. Price continued its drop today as it approaches closer to the important $6k mark. Price has dropped below $6k a number of times this year but if it returns below again, it may be more difficult for the price to trade back above in a case of support turns resistance.

The descending triangle pattern which has been in play since January gives further legitimacy to the case that Bitcoin is bound to drop back below $6k and yesterdays drop was perfectly in line with the descending triangle resistance. The MACD is converging and is approaching both a signal line crossover and a centerline crossover to the downside, both bearish signals.

Bitcoin Daily Chart – Source: Tradingview.com

On the hourly, we get a closer look at the recent drop. Price traded in a range after the initial drop which made a bear flag likely. The bear flag executed and price action moved to lows below $6400. After the bearish flag executed, a slight reversal back up to $6500 occurred which makes a second bear flag less likely.

But with the sentiment very much bearish over the past two days, the next significant move is likely to be to the downside. The outlook is bearish. Next significant support is $6100 to $6000 and $6750 to $6850 should act as important resistance.

Bitcoin Hourly Chart – Source: Tradingview.com

Key Takeaways:

  • Bear flag executed bring Bitcoin price to sub $6400.
  • Outlook is bearish with over 13% decline over the past two days.
  • $6100 to $6000 are important to monitor as support.
  • $6750 to $6850 are important to monitor as resistance.
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Market Bloodbath as Bitcoin [BTC] Price Continues to Drop was originally found on [blokt] – Blockchain, Bitcoin & Cryptocurrency News.