31.10.2020

After Failing to Reclaim $7,000, What’s Next for BTC?

In brief:

  • Bitcoin exhibited some bullish momentum earlier on in the week. 
  • BTC traded briefly at $7,200, dropped below $7,000 and then attempted, with no success, to reclaim this level as support. 
  • However, we are back in familiar territory with $6,900 being the level to overcome once again. 

On April fools day, keen crypto traders managed to identify $6,200 as a good support zone for Bitcoin and rode the $1,000 move that soon followed. The King of Crypto traded briefly at $7,200 (Binance rate) only to soon fall back down below $7,000. A second push by BTC was initiated on the 3rd of April but this time around, it could only get to $7,062.

What’s Next for Bitcoin?

Bitcoin Price Analysis: After Failing to Reclaim $7,000, What's Next for BTC? 17

6-Hour BTC/USDT Chart Courtesy of Tradingview.com

When we further look at the charts on our favorite 6-hour time frame, we observe the following.

To begin with, BTC has the following near term support zones: $6,600, $6,200 and $5,800. The King of Crypto also has the previously mentioned $6,900 and the newly acquired $7,200 as additional resistance.

Secondly, the MACD on the 6hr chart looks set to cross above the baseline in a bearish manner with the MFI indicating that Bitcoin might have had a local top at $7,200. Additionally, the trade volume has reduced drastically in the last few days indicating that the King of Crypto is destined to retest the aforementioned support zones.

However, its current value at $6,710 is above the 50 (white) and 100 (yellow) moving averages indicating that unless there are some serious fundamentals forcing a bearish turn of events, these two MAs might just act as additional support for BTC. Another likely scenario is sideways movement until Monday. Therefore, it might just be one of those weekends where we sit back and watch what Bitcoin’s next move will be.

Death Cross Still in Play on the Daily Chart

A fact worth remembering is that the death cross earlier identified on Bitcoin is still very much in play. The 50 daily moving average crossed the 200 daily moving average on the 27th of March. This means that we are still in bearish territory. The daily MFI is currently at 68 indicating that the move up by Bitcoin, might have come to a short break.

Bitcoin Price Analysis: After Failing to Reclaim $7,000, What's Next for BTC? 18

Daily MFI at 68 and a death cross still valid

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In the hours and days ahead, the following support zones might be worth noting down.

  • $6,600
  • $6,200
  • $5,800
  • $5,700
  • $5,050
  • $4,450

Disclaimer: This article is not meant to give financial advice. Any additional opinion herein is purely the author’s and does not represent the opinion of Ethereum World News or any of its other writers. Please carry out your own research before investing in any of the numerous cryptocurrencies available. Thank you.

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