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1 month ago

Bitcoin Exposed to $7200 Support, an early in the day Price Dip.

An expected deeper drop to $7,200 was the fate Bitcoin (BTC) on Wednesday yesterday. The crypto king dived out of a narrowing price range and took a dip. In the U.S. trading hours yesterday, bitcoin market value fell below $7,850 which was an unfavorable break of a contracting triangle pattern drawn from the first trading days of the week. The leading cryptocurrency had seen a series of higher lows and lower highs from Monday and Tuesday but it wasn’t the same for Wednesday. This put sellers in the market on a higher pedestal and it inherently curbed the bullish view put forward by the near 13 percent price rise seen on Sunday.

 

Currently, the forerunning cryptocurrency is trading a little above $7,500 but could continue to dip further for a short while. Prices hit an intraday low of $7,468 earlier today. The current price of bitcoin represents a 4.58% drop according to live data updates.

BTC dived out of the contracting triangle yesterday, multiple rejections at $8,300 shown from chart data was an imminent cause of the price exhaustion to $7,200. The relative strength index (RSI) has shown below-50 readings which are lower highs than the surge brought before.

The bitcoin volatility of late has not made predictions easy but a possible GMT close below $7,206 would confirm a double-top breakdown which is lower than now but that may make room for a bullish upward movement in the nearest movement.  Seeing as there are usually further dips before significant surges occur.

That said, from chart history, there has been a strong 30-day moving average (MA) and it is currently located at $6,475. That average is seen sloping upwards to $6,500 in the next couple of days. As a result, any following sell-off could be cut short near that level.

Prices could spike in the next day or two contrary to expectation with a possible greater increase by the incoming June. Bitcoin should, however, struggle to maintain bullish signs that would keep it away from the bearish $7,200 level it had the earlier experience, to prevent any further trend change on the technical charts.

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Credits -Omkar Godbole

Anita O.

Lover of tech and blockchain.

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