In the previous assessment, we noted that BTC/USD was having trouble pushing above $7500. We noted that a hold below $7500 with a dip below $7200 would open up $6000.
Price did top out $7500, but it hasn't just immediately plunged to $6000. still the move to $6700 was fast, and we might see some near-term bounce before further downside.
BTC/USD 1H Chart
- In the 1H chart, we can see that price could not hold above the 200-hour simple moving average (SMA). Price action actually formed a head and shoulders just under $7500 and eventually fell below it.
- The RSI has swung back below 30. This reminds us that the prevailing bullish momentum in April so far is dead.
- In fact, if the RSI comes back up and holds under 60, we are likely going to see more downside, at least back to the $6450 low.
- Also, we should monitor price. If BTC/USD fails to push above $7200 this week, we are likely going to see downside over the weekend into next week towards $6450.
- A break below $6450 would confirm the bearish outlook towards $6000.