Will Bitcoin Recover From Crash In Near Term?

Bitcoin has slightly recovered from yesterday’s low from $ 6295 towards $ 6500 mark according to cryptocompare index. Will Bitcoin recover from crash in the short term after a dip of almost 15% in a single day?

7 September, AtoZ Markets – Today, Bitcoin or BTCUSD trading near $6500 levels after a panic selling since past two days. The BTC crashed almost 15% on Wednesday and touched the lows at $ 6,295 on Thursday. Also, the most popular crypto-currencies like Ethereum, Ripple, Litecoin and Dash also lost the momentum. After a fall, Bitcoin approximately lost $15 Billion market cap and is now standing at $113 Billion. Moreover, the overall cryptocurrency market is dipping due to Bitcoin whales emptying their holdings.

The BTC price and other altcoin took a dip this week after reported by U.S. investment bank Goldman Sachs has plans to set up a cryptocurrency trading desk. Also, the doubts among the investors about the interest that the Wall Street and large institution have on Bitcoin and crytpocurrency. Additionally, the Iranian government shall now regard cryptocurrency mining as an Industry so as to rationalize the effect of economic sanctions obligatory by the US.

BTCUSD Technical Analysis: Will Bitcoin Recover From Crash?

Currently, an engulfing bearish candlestick pattern has been emerged in weekly time-frame. Occurring during an uptrend, this pattern characterized by a large black real body, which engulfs a white real body (it doesn’t need to engulf the shadows). This signifies that the uptrend has been hurt and the bears may be gaining strength.

According to Fibonacci retracement charts, the BTCUSD is trading below 23.6% Fibo. retr. zone. On the upside, if the BTCUSD pair slightly recover after a dip and remain above the golden ratio zone above 38.2% i.e. 6700 level than a bullish momentum might be seen in near term. So, crossing the $6700 level is the crucial level for the Bitcoin as more traders might join the rally at this price point. On the downside, if the pair failed to sustain its daily strong support level i.e. 6300 than a dip towards $5700- $5800 could be seen in coming days. In my opinion, the traders should wait for the another swing towards $6800 as the chances are high that the BTCUSD might tumble to $5700- 5800 mark in few days.

  • The relative strength index(14) value is nearby 40.68 which signals “SELL” in daily timeframe. 
  • The CCI(14) valued at -149.68 which again signify selling signal in 1D chart .
  • The MACD(12,26) – selling signal in daily charts.
  • Moreover, according to ATR(14), the BTCUSD pair is Less volatile.

BTCUSD Daily Pivot Points

The Bitcoin has significant daily support near $6310 level and resistance near $6720 level.

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