Bitcoin price is getting battered as if there’s no tomorrow. Following a huge red weekly candle closure, the benchmark crypto was crushed through another support zone in a plunge down to $6,600. BTC is now in a very dangerous territory which could result in a drop all the way back to $5k – here’s how.
Bitcoin Price Back in $6k Zone
When things turn south in crypto markets it happens in the blink of an eye. As positions get liquidated en masse, the short-selling avalanche gathers pace and that is exactly what has been going on over the past week.
The weekend saw bitcoin price take a breather and hold around the $7,200 level for a while but the bears came out again in force on Monday morning as BTC dumped to a six month low just above $6,600 according to Tradingview.com.
The RSI on the hourly chart is massively oversold so there may be a slight recovery here, but further losses are looking likely.
The digital asset is getting hammered hard with a 7% loss on the day, 22% pounding since the same time last Monday, and a 52% demolition since its 2019 high five months ago.
The failure of the weekly candle to close above $7k has analysts rattled and predictions of a fall below $6k are now starting to look like a harsh reality. Trader and analyst Josh Rager has eyed a support level for a bounce in the low $6k region;
“Funding still positive, so not overly bearish at this point as $6300s would be an eventual target here, the only question is does it bounce back up to high $7ks before or after the next drop,”
$BTC Weekly close
18% drop this week and currently trying to hang out to the $6800s
Funding still positive, so not overly bearish at this point as $6300s would be an eventual target here, the only question is does it bounce back up to high $7ks before or after the next drop pic.twitter.com/UkNj7kJT9W
— Josh Rager
(@Josh_Rager) November 25, 2019
This takes into consideration the long spell of consolidation bitcoin had at the $6,400 level last year. This year however there has been no such support or resistance in this range which could result in a plunge back below $6k pretty rapidly.
BTC Back At $5k?
A more worrisome scenario would be a return to $5k and this figure is significant because it is where the 200-week moving average lies. This technical indicator served as solid support throughout the 2018 crypto winter when bitcoin dropped to its low below $3,200.
If this pattern is to repeat bitcoin price may well fall back to that support at $5k and hold there before any moves into positive territory occur. This at the moment is the worst-case scenario for bitcoin prices, but we have been there before and came through it.
Will bitcoin price dump to $5k this year? Add your comments below.
Images via Shutterstock, BTC/USD charts via TradingView, Twitter: @JoshRager
The post Bitcoin Price Could Dump to $5000 in the Near Future, Here’s How appeared first on Bitcoinist.com.
Bitcoinist.com is author of this content, TheBitcoinNews.com is is not responsible for the content of external sites.
Our Social Networks: Facebook Instagram Pinterest Reddit Telegram Twitter Youtube
