Bitcoin BTCUSD fails to keep up over $7,000 | Is it another Bearish indication?

Bitcoin moved past the $7,200 mark on Thursday, but since then, it has failed even to reach that level once. Until unless there is a significant rise in trading volumes, a clear Bullish trend cannot be associated with Bitcoin.

Bitcoin crossed the $7,200 mark on Thursday. It was a much-needed break from the consolidation phase for all the Bitcoin enthusiasts. However, since then, the BTCUSD has been trading around the $6,700 range. It hasn’t been able to push past the $7,000 barrier even once after that. 

The fact that trading volumes are pretty low has added to the distrust of the investors. Some analysts and self-proclaimed Bitcoin experts are pointing that this could be the calm before the storm. Bitcoin could drop to par $4,000 levels soon. And they might just be right!

 

Let us take a closer look at the BTCUSD technicals to understand better:

  • If we bring up the daily chart, it can be observed that Thursday’s rally is a candle with a small body and a large wick. This indicates that there wasn’t a substantial Bullish momentum at play. 
  • BTCUSD reached the 61.8% Fibonacci retracement point. It has formed strong support at $6,650.
  • As of now, BTCUSD is trading at $6725. Pivot is at $6518.26.
  • Relative Strength Index has a neutral view.

The path ahead for the BTCUSD

  • On pulling up the weekly chart, and extending it to view the historical prices, we would be able to backtest the prices.
  • It can be observed that the trend for the Bitcoin has been a consolidation around the $6,800 – $7,200 range
  • This region could potentially work as a resistance.
  • If Bitcoin breaks out of this region, and that too with large traded volumes, the BTCUSD could potentially reach the $9,000 level.

 

Bitcoin prices would be closely associated with how the COVID-19 pandemic is being fought off by various countries of the world. As of now, it might be too early to associate a Bullish signal with Bitcoin. 

However, it has a possibility of crossing the $9,000 level mark, if the consolidation is broken with high volumes. Until then, it would be advisable to tread with caution.

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