Bitcoin Price Seems to Ready for A Breakdown
The price of BTC/USD is signaling selling continuation under $6,800. It is like the world’s renowned cryptocurrency is focusing on visiting the support at $6,500 or $6,200.
There was a consolidation over the support at $7,000, and the sellers gained some momentum. Hence, the price of Bitcoin declined to under the support at $7,000 and established a level under the 100 hourly SMA.
The price has declined by almost 4 percent and was able to break the support zone at $6,880. It was such that there was the formation of a new low in the month close to $6,800, and the price is now into the consolidation of its losses.
A look at the hourly chart of Bitcoin against the USD shows that the first hurdle is close to $6,880. A crucial observation is the formation of a short term contracting triangle with hurdle close to $6,880 on the same chart.
Hence, a surge of over $6,880 could begin a short term upside retracement. The immediate hurdle is close to $6,980.
Nevertheless, a key hurdle was observed close to $7,000 and $7,015, which is the breakdown zone recently. The price needs a daily close over $7,015 to begin a remarkable recovery soon.
On the other hand, there is a likelihood of the price accelerating lower under $6,840 and $6,820. The ability of the crypto to break the $6,800 low could strengthen the bears to target levels close to $6,600 or $6,500.
Any additional declines could take the price towards the major support zone at $6,200, where there is a likelihood of the buyers taking over.
Featured image courtesy of Shutterstock. Source: CryptoPress.