• 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

BTC/USD price chart
BTC/USD price chart by Tradingview

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

Relative change:

Daily percentage change:

Trend: Bearish bias

Volatility: High

RSI: Ranging, hints continued sideways trading

The post Bitcoin Price Analysis: Is $6,500 The Main Sport Or Should You Belt Up for $5,500? appeared first on Coingape.

Source: Coin Gape