Bitcoin May Tumble to $6,000 as Resistances Falter
Strong pattern resistances are only found around $6,100.
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Bitcoin continues to trade below the psychological $7,000 level, following Monday’s wide-spread crypto sell-off that caused the market to shed over $10 billion in value.
All top 10 cryptocurrencies continued to trade at fresh monthly trading lows, though XRP was affected and continued to rack up losses under the $0.20 level.
BTC/USD long positions continue to hit new record highs on the Bitfinex platform. Margin retail traders appear undeterred as Bitcoin’s value trades close to a seven-month trading low.
Waves was the notable outperformer inside the top 100. It has been rallying for seven days straight and is still holding above yesterday’s levels, despite suffering a retracing as well.
The total cryptocurrency market capitalization is currently $176 billion as measured by TradingView, marking its weakest trading level since Nov. 25.
Technical weakness below the $7,000 support level triggered a bearish head and shoulders pattern into action yesterday.
Looking at upcoming support for BTC/USD, if the November monthly trading low is broken the $6,000 support level should start to come into focus.
The bottom of the falling wedge pattern on the daily and weekly time frames currently offers the strongest form of technical support, around the $6,100 level.
Former support now becomes resistance, with the $7,000 and $7,070 levels acting as key resistance zones above the $6,850 level.
The Waves/USD pair has recently been bucking the broader downtrend and rallying back toward the psychological $1.00 level. Bulls need to move price above the $1.25 level in order to turn the cryptocurrency technically bullish.
From a technical perspective, the cryptocurrency faces formidable resistance around the $1.00 to $1.25 region. Furthermore, after seven days of gains the pair is now overbought.
Traders may use the latest rally as a chance to sell into the broader downtrend. Only a sustained rally above the $1.25 level may persuade traders that a long-lasting trend shift is underway for Waves.
According to the latest data from The TIE, sentiment toward the cryptocurrency market is neutral at 48 percent.
Tezos has the strongest sentiment among the top 10 at 64 percent. Meanwhile, Bitcoin has the weakest at 31 percent.