Analysts: Bitcoin May Drop Below $ 7000
According to well-known cryptocurrency analysts, Bitcoin price may drop below $ 7,000 in the near future because of the prevailing bearish sentiment on the market.
According to CoinDesk technical analyst Omkar Godbole, the price of “digital gold” was lower than the key support in the form of a 30-day moving average. As a result Bitcoin price could decline to $ 7,000.
The 14-day RSI has broken down the trend line, which lasted from the December low at around $ 3,100. At the same time, the RSI is currently below 50.00, that is, in the “bearish flat”.
Another factor in favor of sellers is the intersection of MA with periods 5 and 10, which are currently directed “to the south”. Also, pressure on the part of customers is signaled by the Chaikin Money Flow indicator (CFI).
Despite the fact that the bulls are trying to regain lost positions and break through the dynamic resistance in the form of the MA 30, most likely, the price will drop even lower in the coming days – to the area of $ 7,000.
According to chart, the RSI exits the overbought zone, signaling to keep correction. Earlier this indicator was observed bearish divergence. A decrease in valu is also observed on CFI.
In general, the current situation on this chart indicates a high probability of a BTC drop to the MA 200, currently passing through the $ 7211.
On the chart, the situation is somewhat different – a bullish divergence is observed on the RSI, signaling the likelihood of a short-term recovery of BTC to $ 8,000. However, taking into account the situation in the previous charts, after the upward correction, the price decline is likely to continue.
The high probability of price reduction in the range of $ 6400-7100 says eToro platform analyst Mati Greenspan.
The aggressive trendline (white) we’ve been tracking is now broken.
We could be looking for a test of the conservative trendline (yellow), or even consolidation at current levels.
In any case, the blue box represents major support. (apprx $6.4k to $7.1k) $BTC pic.twitter.com/xQtg4Ibt45
— Mati Greenspan (@MatiGreenspan) June 4, 2019
According to Greenspan, it is noteworthy that the downward movement occurs against the background of growth in trading volumes on the 10 leading exchanges with real trading volumes, as well as despite significant transactional activity in the Bitcoin network.