Crypto News

Bitcoin in Danger of Breaking $6K After Forming Double Top

bitcoin price drop to $5k

Bitcoin has slightly declined during the last 24 hours, according to Coinmarketcap data, but the drop might extend in the coming hours and days. Currently, the BTC/USD pair is trading at $6,616.25 as of 7:47 UTC.

Bears Might Take Control of Bitcoin Mood
Yesterday, the price couldn’t break above $7,000 on most major exchanges and formed a double top on the hourly chart, which is a well-known bearish pattern in technical analysis. The first top showed up on March 20 when Bitcoin recovered some of its previous losses amid a rally that detached it from traditional markets.
Nevertheless, the rally couldn’t push it above the psychological level of $7,000, which has discouraged bulls.

Besides, the price is dangerously approaching the support line of its uptrend that took off on March 16. If it breaks below it, we might see the largest cryptocurrency trading at around $6,000 again. However, if the support holds, we could see a bullish ascending triangle pattern breakout take place if volume picks up.
So far, the only positive sign from a technical analysis perspective is that the 50-day moving average has recently broken above the 100-day and 200-day moving averages, which should act as a healthy bullish sign. Nevertheless, the 50-day and 100-day moving averages can cross their lines again soon, which would put additional pressure on the Bitcoin price.

If the price breaks below its support line, it could quickly fall to $6,000, with the next likely support level down at $5,000.
Can Fundamentals Help?
The fact that the US Fed expressed its readiness to pump as much cash as needed should have been a bullish sign for the cryptocurrency, which has a capped supply. However, this is not the case at least in the short term, as Bitcoin has decided to follow the declining stock markets. Previously, the cryptocurrency has closely followed the US and European stock markets to get hints about next moves.
Yesterday, the US Senate approved the biggest economic stimulus package in history, worth $2 trillion. Now, the legislation 96-0 should go through the House of Representatives.
Despite the unlimited quantitative easing pledges from central bankers, nothing is clear at the moment since the COVID pandemic can take an unexpected turn in either direction.
Last week, Fundstrat said that Bitcoin would take months to recover.
Do you think Bitcoin will manage to handle the bearish pressure this month? Share your thoughts in the comments section!

Images via Shutterstock, TradingView

How useful was this post?

Click on a star to rate it!

As you found this post useful...

Follow us on social media!

Related Crypto News

Technicals Suggest Bitcoin Needs To Clear $9,800 For Hopes of a Fresh Rally
Bitcoin is currently correcting higher from the $9,300 support against the US Dollar. BTC price must clear the $9,740...
Podcaster Joe Rogan Uses Crypto-Powered Brave Browser
Joe Rogan and Reggie Watts just talked up Brave to millions of people. Podcaster Joe Rogan has revealed that...
Hive’s Transactions Overtake Steem’s as Splinterlands Joins the Rebellion
The most-popular Steem DApp has moved to Hive, resulting in daily Hive transactions overtaking Steem for the first time....
US Regulators Target Bitcoin ATMs: 88% of the Funds Exit the Country via Machines
Bitcoin automated teller machines (BATMs) will become the next target for regulators, as world governments tighten screws on money...
‘Crypto Mom’ Nominated to Serve as SEC Commissioner Until 2025
Hester Peirce, affectionately known as ‘Crypto Mom’, looks set to serve in the US Securities and Exchange Commission until...
Walmart China Subsidiary Teams Up With VeChain to Trace Food Products
VeChain has partnered with a Walmart China subsidiary to increase supply chain transparency for its food products. Sam’s Club,...

Featured Crypto News

Bitcoin Sells Off At $9.5K Ahead of Trump’s China Response; What’s Next
Bitcoin breaks below $9,500, a crucial support level, a day after breaching it to the upside. The cryptocurrency pared...
Bitcoin May Surge as Chinese Yuan Gets Fixed to Lowest Price in a Decade
Unlike Bitcoin and other free markets, the Chinese yuan market is fixed and somewhat controlled by the country’s central...
Coinbase Now Supports Tezos Staking Rewards for UK and Some EU Users
Major crypto exchange Coinbase is rolling out Tezos staking rewards for users in the United Kingdom and three European...
Digital Currencies Could Threaten US Geopolitical Power, Warns JPMorgan
“There is no country with more to lose from the disruptive potential of digital currency than the United States,”...
Ethereum Could Stage Strong Rally As Double Bottom Pattern Emerges
Ethereum nosedived below the $202 support zone against the US Dollar. ETH price revisited the $192 support and it...
Bitcoin Traders Now Eye $6-7Ks After 4 Failed Attempts to Break $10K
The price of Bitcoin is set to test lower levels as support after numerous attempts to break $10,000 have...