Bitcoin Forecast: Bearish Breakout Below $6360 Support Level

Bitcoin currently saw a sudden drop in price below $6,500 level and following the bearish trend. Are the bears getting ready to pull Bitcoin price below $6,360 level?

03 October 2018- Yesterday, Bitcoin price was in a bearish trend. After trading in a range-bound zone, Bitcoin dropped below $6,500 level. Bitcoin price is trading near $6,450 mark according to Bitfinex index. The coin has a market cap of $111 Billion with the 24-hours trading volume of $312.24 M. Bitcoin has slumped back to the bottom of its ascending channel on the 1H chart. Will a bearish breakout below $6,360 level can be seen in upcoming days?

Analysis: Will Bitcoin Drop if it Breaks $6360 Support Level?

Looking to the weekly chart, Bitcoin price has moved by $ 3.97 (0.06157%) with a total volume of over $ 2.10 B. The coin reached the highest price of $6,806 on Friday and touched the weekly bottom $6,428.98 today. The 100 SMA is still below the longer-term 200 SMA on the 1D time frame to indicate the path of least resistance is to the downside. This suggests the downtrend could still resume from here. 

The failure of bullish pull above the resistance level of $6,800 has resulted in the fall of Bitcoin price. Now, if the price fails to remain above the weekly strong support than a dip towards $6,110, $6,000 is likely possible. 

Moreover, if the $6,200 level is broken, the support zone of $5,900 and $6,000 is likely to be revisited. In addition to that, the MACD line and the signal line are below the zero line which indicates a selling signal. Also, Bitcoin price is below the 12D-EMA and the 26D-EMA which indicates that a bearish trend is on-going.

According to Fibonacci retracement charts, Bitcoin price is trading below the golden ratio zone and struggling to cross the 23.6% fibo. retr. zone. The point above the 23.6% fibo zone which is above $6,500 level is crucial point for Bitcoin to attract buyers. Thus, if the price failed to get support from here than a massive bearish rally towards the $6,000 level might be seen in upcoming days.

  • The Relative Strength Index(14) value is near 50 which signals “Neutral”
  • The William%R signals the selling action on weekly time-frame.
  • MACD(12,26) – “Sell” signal in weekly charts.
  • ATR(14) signals Bitcoin is less volatile.

Bitcoin Weekly Pivot Points

Bitcoin has a weekly strong support at $6,360 level and resistance near $6,830 level.