Bitcoin (BTC) Price Analysis – June 4
After testing $9000 on May 30, the Bitcoin market has started to see a dramatic price drop as it loses $1400 within five days of trading. The surge became significant after breaking down the ascending channel earlier today, marking low at $7600. The bears are now waxing stronger as price slumps.
BTC/USD Long-term Trend: Bullish (1D chart)
Resistance levels: $8300, $8700
Support levels: $7000, $6500
We are down below $8000 after breaking down of the ascending channel earlier today. At the moment, Bitcoin is heavily selling as it touches $7600 a few hours ago. In a short time, we may test the $7000 which has been psychological support for the past few days. The $6500 may possibly hold the sellers if the $7000 level breaks, sitting on the green trend line.
BTC is now testing the 50 level of the daily RSI. If the price break below this level, $6500 is inevitable for the bears. For a bullish reaction, we may see a retest around the $8300 and potentially $8700 resistance. On the daily Stochastic RSI, Bitcoin is oversold due to the bearish control.
BTC/USD Medium -term Trend: Bullish (4H Chart)
Following an ascending channel for the past three weeks, Bitcoin’s eventually fell out of the channel boundaries after opening short today. The sellers are heading towards the $7000 – $6800 zone where the channel formation began on May 12. However, the lower channel area may be retested around the $8000 – $8300 before rally continues.
Furthermore, both the RSI and the MACD are now significantly bearish. The 4-hours RSI may recheck the 50 level before staying in the medium-term bearish. Predictably, the 4-hours Stochastic RSI might resume bullish as soon as the buyers react to the ongoing selling pressure. Before the sellers gain strength, Bitcoin might run quick retracement for the next bearish surge.