Bitcoin plunge – Important $6,000 support zone must hold

6.8.2018 | 13:19

The entire crypto currency market is suffering tremendously today. The Bitcoin course is currently facing an important support zone that must withstand to prevent another crash of the price.

Bitcoin Price Highlights
Bitcoin’s share price did not gain and broke through several important support zones
Bitcoin is currently under strong sales pressure and approaching the important $6,000 support area
The descending channel is still intact and one approaches the channel center
Technical indicators Signals
The 100 SMA is below the 200 SMA to show that the path of least resistance is down and thus the selling pressure is still present. The bitcoin is currently taking a hit and is around $6,100 with another negative outlook. It looks like they’re testing the important $6,000 psychological support level last reached in February. If BTC breaks through the important support, the price will fall in the next few days, towards channel support at $5,200. As already mentioned in the last technical analysis, the RSI has not been able to break above the 61 mark for days, so that there is still a lack of decisive buying dynamics. Currently, the 4-hour chart’s RSI is at 20, reaching oversold territory, signaling that selling pressure may ease in the near future. The MACD is again in a declining zone. Bitcoin is still in the descending channel and has reached the channel center with today’s “crash”. As already mentioned, the $6,000 support zone is important to avoid further panic selling and a crash towards $5,000.

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Bitcoin Chart from TradingView

The explanation of the terms of the technical analysis can be found under this link.

Note: This is not a buy recommendation but merely the opinion of the analyst. Technical analyses do not guarantee success in trading. Crypto currencies are a high-risk investment, even a total loss is possible. The losses can also have long-term health effects.

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