Cryptocurrency

Bitcoin threatens to fall below the 6,000-$-brand – take on the bears in control?

Bitcoin has fallen in the last 24 hours, only slightly, however, could extend the decline in the coming hours and days. Currently, the Pair is BTC/USD is traded at $V6. 616,25.

Bears could take control

Yesterday the price could not go to most of the major stock exchanges over a total of $7,000, and formed on the hourly Chart, a so-called Double Top, with what is, in technical analysis, a well-known declining pattern.
The first maximum was at 20. March, as Bitcoin was able to catch up in the midst of a recovery, which broke away from the traditional markets, a part of its earlier losses.
Nevertheless, it was the rally is not possible, the Asset above the psychological level of $7,000 press, which has discouraged the bulls.

In addition, the price is dangerously approaching the support line of the upward trend, the on 16. March began. If it breaks below that line, we could be the largest crypto-currency in about $ 6,000 to trade to see.
The support should, however, remain, it could lead to a bullish breakout of the ascending triangle pattern, if the volume increases again.
So far, the only positive sign from the point of view of technical analysis, that the 50-day moving medium is value broken recently on the 100 – and 200-day Moving average and beyond what is expected to be a healthy bullish sign.
Nevertheless, the sliding end 50-day and 100-day averages again soon exceed their boundaries, which would put the Bitcoin price in addition to under pressure.
If the price breaks below its support line, it could quickly fall to 6,000$, where the next support level is expected at 5,000 $.

What about the fundamentals?

The fact that the US Central Bank has expressed its willingness to pump as much money as needed, could be a bullish sign for the crypto-currency. This is, at least in the short term, the case because Bitcoin has decided to follow the bearish stock markets.
Yesterday, the U.S. Senate passed the biggest stimulus package of the history to the value of 2 trillion dollars. Now the law 96-0 should go through the house of representatives.
In spite of the unlimited quantitative easing commitments by the Central bankers, nothing is at the Moment unclear, as the COVID pandemic can take an unexpected turn in both directions.
Last week, the Fund joined told analysts that it will take months until Bitcoin recovers.

About the author

Eve Manning

Eve Manning

A native Texan, Eve first started out as a Finance Analyst and later realized that her true passion was not in trading but in writing. She leverages her experience in the Finance industry to analyse and write in-depth news articles covering the Cryptocurrencies, Economy & Finance industries.