After falling from around $8500 to $6000, Bitcoin (BTC/USD) started to consolidate. On the 4H chart, the price action looks like a possible rounded bottom.
BTC/USD 4H Chart
- The price bottom attempt got some momentum when price pivoted above $6200.
- A break below $6200 now would open up the bearish continuation outlook.
- Also, price failed to close above $6600, so a break above that would open up a bullish correction scenario.
- With price in the middle of these pivots, BTC/USD is at the crossroad. However, there is a bearish bias.
- Note that price is under the 200- and 100- period simple moving averages (SMA).
- Also, the RSI came up to 60 and turned down. This reflects maintenance of the bearish momentum.
- Finally, just the shape of consolidation in the past week was a sign that bulls are running out of gas here in this price attempt.
- I wouldn't be surprised if price finally breaks out of this consolidation this week, especially to the downside.
- The bearish scenario first has the $5850-$6000 area in sight.
- Most likely, if price can get back to this support area, it will continue down towards the $5600 and $5000 area, which represent support pivots seen on the daily chart below.
BTC/USD Daily Chart