Bitcoin price against US Dollar has dropped to a 2-weeks low of around US$6200 range. Technical charts confirm a range breakdown.
Bitcoin-USD (BTC/USD) price moved sideways over the $6400 support area for 10-days straight. Many analysts believed that it’s consolidating and will lead to a bull run. However, most of them are proved wrong when bears pulled down the price down, opening up the drop towards the major support at US$6100.
Technical Analysis of Bitcoin Price (BTC/USD)
The tug of war between the bull and bears ended up with bears being victorious. After a prolonged and uncannily low volatility, the sell-off led to a fall of -5.71%. The technical charts indicate that more losses could come. Currently, the price is moving around US$6279.19, showing a drop of just -0.10% in the last 24-hours chart.
Bearish sentiment is also very cautious as a probable bounce back can take place from the 21 month EMA (Exponential Moving Average) support area, located at US$6109. In fact, the trendline connecting June and August lows is also lined up at US$6094.
However, the EMAs at the crucial 5-day and 10-day are pointing towards a bearish market, especially after the range breakdown yesterday. Major indicators such as MACD and RSI also point towards a bear run in the short run. While bearish crossovers are evident from MACD indicator, bearish conditions below 50.00 are indicated by both stochastic and RSI (Relative Strength Index) indicators.
Reports say the bear market will resume if Bitcoin price against the US Dollar (BTC/USD) closes (monthly closing) below 21-month Exponential Moving Average. However, the bearish pressure will be weakened by a UTC close above $6,355 (10-day EMA).
Photo Credit: pexels.com