Bitcoin traded largely sideways over the last 24 hours, though a drop soon can threaten the 10 day moving average Bitcoin price that was around $6,000 but recent shift has risk the bullish chart pattern if the price still keep going below $6,000. However, crypto currencies manage to defend the trade and establish a round figure around $6,300 provided as a short-term support in the middle of oversold conditions yesterday. But, the resilience failed to entice bulls, and create downside pressure on prices of all crypto currencies.
Due to this shift, BTC fell to a bottom low of $6,145 earlier today. Last trading price was seen at $6,170. Clearly, there is a risk of a drop below $6,000 if this shift starts to continue to dip.
If cryptocurrency finds acceptance below $6,000, there is a chance of BTC’s price charting a bullish head and shoulders bottom. It could be a reversal of current downtrend as predicted in the following chart.
The bear flag breakdown indicates the sell-off from the recent high prices and predict it to be at $6,820. Prices could drop and touch the low of $5,755(target as per the measured height method) on June 24.
The major moving averages (50, 100 and 200) are trending south, signals the path of least resistance to the downside. So, a break down below $6,000 could be seen in coming days.
The only thing that could help BTC stay above $6,000 is the oversold conditions shown by the relative strength index (RSI). Although, this relief could be short-lived as the RSI on the long duration chart is biased to the bears. The RSI is hovering below 50 but is holding well above the oversold regions which could lead a drop towards $5,755.
Only a convincing move above $6,408 (high of the bear flag) would abort the bearish view put forward by the bear flag breakdown. In BTC’s case, the left shoulder’s low is $6,108. So, BTC needs to create the right shoulder in the range of $6,000-$6,100. Bulls need to defend the support at $6,000 and establish a quick rebound to reverse the current downtrend.