Bitcoin Price (BTC) Eyeing Strong Comeback After A Massive Fall
Bitcoin price tumbled more than $5,000 in the past two days. BTC to USD is currently correcting higher from $3,865 and it is likely to continue higher towards the $6,000 and $6,200 levels.
Key Takeaways: BTC/USD
- Bitcoin price fell significantly from well above $8,200 and it tested the $4,000 area against the US Dollar.
- BTC/USD is recovering and trading near the $6,000 resistance plus a bearish trend line on the 2-hours chart (data feed from Bitstamp) to enter a bearish zone.
- Ethereum is also recovering from well below $100.00 and it is now trading above $125.00.
Bitcoin Price Analysis
In the past few sessions, there were heavy swing moves in bitcoin price below the $8,000 and $6,000 support levels. BTC to USD broke multiple supports near the $5,000 and $4,800 levels to extend its decline.
Looking at the 2-hours chart, bitcoin even traded below the $4,200 support level and settled below the 50 simple moving average (2-hours, purple). Finally, there was a break below the $4,000 handle and the price traded as low as $3,864.
It is currently correcting higher and trading above the $4,500 and $5,000 levels. The bulls were able to lead the price above the 23.6% Fib retracement level of the recent dive from $8,021 to $3,864.
It seems like bitcoin price is recovering and trading near the $6,000 resistance plus a bearish trend line on the same chart. The 50% Fib retracement level of the recent dive from $8,021 to $3,864 is also acting as a resistance near the $5,942 level.
If there is an upside break above the $5,940 and $6,000 resistance levels, the price could start a strong increase. The next resistance area is seen near the $6,260 and $6,433 levels.
The later one represents the 61.8% Fib retracement level of the recent dive from $8,021 to $3,864. Any further gains might call for a push towards the $7,600 resistance area.
Conversely, bitcoin price could fail to continue above the $5,940 and $6,000 resistance levels. In the mentioned case, there are chances of another decline towards the $5,000 level.