Bitcoin recovered some of its losses last week finding support around $4500-5000, reaching a weekly high of $7139. It is important to note that the SPOT price of BTCUSD closed the week above $5814 – above the 200 MA weekly level sitting at $5558, which is historical point of support.
On the 1D chart the price is facing resistance around $6400 – significant horizontal level and 382 Fibonacci from the top to the low. 50/200 bearish cross is expected in the next few days, which will confirm bearish arguments for a move lower.
On the 4H chart we can see an ascending channel, which in the current downtrend, is signalizing that the current bounce is a more of a correction than a impulsive move and reverse of the trend.
It is important for the traders to look for the levels around the ascending trendline of the channel, where the horizontal level of the last weeks breakout is also located – around $5600-5700. If buyers show support here, most likely the correction will continue to the next Fibonacci level of the downtrend – the level between 0.5 and 0.618 – $7200-8000.
Break down of the level will initiate a new sell-off and a bearish swing to the low of the range – around $4000.
4H RSI already broke down.
Junior Trader Radi Djuma