Recently, Bitcoin (BTC/USD) formed a short-term price bottom and looked like it was going for a bull run. We were anticipating a bullish rally within the context of a bearish correction. But even our bearish bias was too bullish as BTC/USD failed to push above $6600.
BTC/USD 4H Chart
Bears Maintain Grip:
On the 4H chart, we can see that price was unable to clear above an earlier resistance pivot This would have been the first key break and it didn’t happen.
The next key price action would have been a break above the $6600 level where the 200- and 100-period simple moving averages (SMA) reside.
Last week, price action was able to hold above $6400, which showed ability of the price bottom to hold. Thus Bitcoin was at the crossroad.
Bitcoin started this week unable to push higher. Instead, the price bottom failed to hold and price is now with bearish pressure.
This failure to bottom suggests pain ahead. I think there is a strong chance price will indeed test that $5850-$6000 support area that has been holding throughout the year .A break below that first opens up the $5000-$5100 area, and then the $3000 mark.