- Bitcoin finds support above $6,500, but recovery is limited under $6,700.
- Bitcoin still faces a potential spiral to $5,500, especially if $6,500 support broken.
Bitcoin bulls are coming together to defend the support at $6,500 after the bears extended the downside action under $6,600. The weekly low formed around $6,553 marked the end of the recent declines. However, many analysts and cryptocurrency enthusiasts do not believe Bitcoin is fundamentally ready for recovery. Instead, they predict further losses below $6,500 and towards $6,000. Interestingly, an analyst popular on Twitter, Jacob Canfield, says that the largest crypto in the industry downside is headed for $5,500. He wrote:
“I think we could see $5,500 personally, as it is the 78.6% from the swing low to swing high, but we may see a bounce or two in between here and there.”
At the moment, Bitcoin is holding ground at $6,500, following a slight recovery. However, the risk of retesting $6,500 support remains high. The Relative Strength Index (RSI), for instance, is grinding sideways at 30. The horizontal movement comes after a short-lived recovery from 22.15. If the motion continues in the same position, Bitcoin could push for consolidation between $6,600 and $6,700.
BTC/USD 2-hour chart
Unfortunately, bearish pressure still hovers over Bitcoin. Also, the current trend is bearish biased amidst high volatility levels. The 2-hour also reveals the increasing gape between the EMA 50 and EMA100. These moving averages at $6,906 and $7,042, respectively, will stand in the way recovery in the coming sessions. The bulls have the task to ensure the price stays above $6,500, lest another downward spiral shifts focus to $5,500.
Bitcoin Key Levels
Spot rate: $6,646
Daily percentage change:
Trend: Bearish bias
RSI: Ranging, hints continued sideways trading
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Source: Coin Gape