Bitcoin price has seen a significant correction today as it dropped from around US$6,400 to below US$6,300 in the 24-hour chart.
Bitcoin (BTC/USD) Price Movement
At the time of publishing, the chart shows US$6,264.38 as the 24-hour low. In the daily chart, two consecutive sell candles were recorded. Currently, the price is hovering around US$6,313.90.
Though the price is down significantly, Bitcoin (BTC) volume is still above US$4.4 Billion. This is 46% higher than what it was earlier this month (which was around US$3 Billion). It seems the leading cryptocurrency is struggling to sustain its momentum around the mid-US$6,000 region.
Technical charts point out that Bitcoin (BTC/USD) is likely to retest the region around US$6,200 in the short run. If the price closes above the crucial US$6,450, the US$6,200 price region may not be retested. However, breaking above the US$6,450 level seems unlikely in the coming 24-hours to 48-hours time horizon. This is mainly because of the fact that the cryptocurrency market seems stable at US$211 Billion region.
Analysts believe a comparatively strong resistance is active at US$6,375 region. It’s likely to hold the BTC/USD pair on several time frames. The strong support and resistance levels are –
Support Levels –
US$6,275 / US$6,200 / US$6,000
Resistance Levels –
US$6,450 / US$6,650 / US$7,400
Will there be a Bloodbath if Bitcoin Price (BTC/USD) falls below US$6,200?
Bitcoin is witnessing a continued downside movement from the US$6,500 region. In the lower region of US$6,000, BTC is unable to secure momentum. Bitcoin showed stability in the mid-US$6,000 region throughout the last 3 months. However, in the last 2-weeks, support levels below the US$6,300 level have been retested multiple times. This is mainly because of the high selling pressure. If the Bitcoin price (BTC/USD) drops below US$6,200, it’ll likely to slide down towards the strong support at US$6,000 level.
Reports say most investors are observing the market carefully. This is mainly because they are waiting for the pending verdict of the US Securities and Exchange Commission (SEC) on initial coin offerings (ICOs). In fact, the market will remain undecided and will move within the US$6000- US$6,500 range as SEC continue its crackdown on ICO projects by considering them as security offerings.
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