After a sharp decline in Bitcoin prices from $7,500 level to $6,100 level, the market has rebounded slightly as expected and now hovering around the $6,500 level. But, this rebound is not an indication of bulls gaining strength, in fact, bears still have the significant control over the market.
The weakness is not just limited to Bitcoin, in fact, it has affected the overall cryptocurrency market with coins like Tron, Ripple, Ethereum hitting lows of 2018. Lesser trading activity can be seen in alt-coins as Bitcoin’s dominance or market share is reaching close to 50 per cent.
As the market is failing to gain momentum and continues to be in a downward trend, Bitcoin is likely to show a large decline in value with $5,800 level as the immediate target. And moreover, as the market is now heading towards the weekend, bulls will be closely watching the price action from distance. The $6,800 level will continue to offer strong resistance and will be extremely difficult for the market to break above unless and until there is any sea change in sentiments.
Looking at both the daily and weekly chart, there is a negative formation with both 20 DMA & 10 DMA lines are crossing breaking below the 50 DMA which indicated further selling pressure. So, looking at the rest of the week, the Bitcoin prices are likely to consolidate in the range between $6,200 to $6,500 level with negative proclivity.
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