Analysis: Bitcoin Price Might be Sluggish Below $6,450 Support

October- 26, 2018 | AtoZ Markets

Bitcoin price traded lower recently after struggling near $6,500 levels. At the time of press, Bitcoin is trading at $6,526 according to Bitfinex data. The coin is currently trading near an important support zone at $6,490 levels.

Since the last week, the price of the coin consolidated at the range bound zone and showed a marginal drop by $ -13.25 (-0.2%) with a total volume of over $ 1.33 Billion. The weekly highest price, $ 6,645.20, was on 21 October which again failed to break the resistance. 

Bitcoin Technical Analysis

After a long struggle to break the $6,600 resistance, the price of Bitcoin has declined recently. The price of the coin declined below the $6,550 support, but the downsides were limited by another important support around $6,450 levels.

If buyers fails to hold the trend line support near $6,400, than there could be more losses in the near term. The next major support in the mentioned case could be $6,200.

Also, the 100 SMA line is below the 200 SMA line which indicates that the path of least resistance is towards the downward direction. Thus, Bitcoin might experience sell-offs in upcoming days.

The 23.6% Fibonacci retracement level of the last decline from the $7,020 highs to $6,460 lows is also near the same trend line. Therefore, a break below the trend line and the $6,500 daily support will most likely open the doors for more losses.

Overall, the sentiment is bearish as the buyers are the charts doesn't show any confirmation of the bullish momentum in near future. Also, the price is currently trading near a crucial support zone. As long as Bitcoin is above $6,450, there is a chance of an upside break above $6,590.

  • The Relative Strength Index placed at period 14 is valued near 50 which signals "Neutral" in weekly time-frame.
  • The William%R signals the selling action on the short-term time-frame.
  • MACD(12,26) – Buy signal in weekly charts.
  • ATR(14) signals that Bitcoin is less volatile.

Bitcoin Weekly pivot points

The price of Bitcoin has a strong weekly support near $6020 and resistance near $7,430 levels.

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