Forecast: Bitcoin Price Might Remain at Risk Below $6,200 Support

October- 30, 2018 | AtoZ Markets

Bitcoin has been trading below a descending and visible trend line in the daily chart and recently suffered a sharp drop. At the time of press, the coin is trading near $6,300 levels with a 24-hours volume of $349 Million. Meanwhile, the market cap of the coin drops to $109B according to data

Moreover, Bitcoin and other cryptocurrencies tumbled on news of an outage in Canada’s MapleChange, which led to the loss of over 913 Bitcoins. The exchange assured that investigation was going on but soon took down its social media accounts and website, casting more doubts on what really went on.

Bitcoin Technical Analysis for Short Term

A "Three Inside Down" candlestick pattern has emerged in the weekly timeframe, which signals a bearish reversal. This candlestick pattern is a more reliable addition to the standard Harami pattern. A bearish Harami pattern occurs in the first two candles with the third candle is a black one with a lower close than the second. And the third candlestick is confirmation of the bearish trend reversal. 

The MAs are oscillating to reflect earlier range-bound conditions and have yet to catch up to the sharp drop. However, the 100 SMA line is below the shorter-term 200 SMA to indicate the path of least resistance is to the downside. Put differently, a bearish trend might be seen in the upcoming days.

If the price of the coin failed to remain supported above $6,200 levels than a break below $6,000 might be seen in upcoming days. Thus, as most of the technicals indicate Bitcoin might face even more bearish pull below $6,000 mark and the chances are higher that the Bitcoin might target towards $5,800- $5,700 levels in short-term. 

Furthermore, the STOCHRSI(14) is pointing down to signal that sellers have control, but the oscillator is nearing oversold conditions to signal exhaustion. Turning back up could bring buyers back to the mix and allow the uptrend to resume. RSI(14) is valued below 50% and is starting to turn back up to indicate the seller is ready to return.

BTCUSD Pivot Points

Bitcoin has a weekly support at $6435 and resistance at $6600 levels.

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