Bitcoin is again encroaching on a test of the $6000 area, having bounced with gusto from the level back in February. It’s currently clinging on to horizontal support at $6611 but should this fail I anticipate a swift 10% drop will follow. There is some support just under the round number around $5850/5900 should it be called upon. The Relative Strength Index (RSI) is oversold but has been showing weakness, allowing the possibility of a further dip below an RSI of 30. If there’s a successful bounce from here, a move above that blue line of diagonal resistance based on previous highs would keep this Cryptofrenzy alive.
Author: Stuart Langelaan
Disclosure: The Author holds no position in the financial instrument mentioned in this piece