After losing support above the $ 7.000 reference price, Bitcoin traded steadily around $ 6.800 over the long weekend, including Good Friday, which took place last Friday.
In our most recent BTC analysis yesterday, we had stated that a price movement is imminent once the new week begins after the future on Wall Street. Soon after, Bitcoin started a decent move to retest the significant support at $ 7.200, along with the 50-day moving average line. The rejection turned out to be false, and Bitcoin quickly plunged $ 650, marking $ 6.540 (Bitstamp) as the current daily low. This is the lowest price Bitcoin saw since the first day of April, 12 days ago.
[amazon box="B00R6MKDDE"]Key levels for price
Furthermore, Bitcoin loses the key support at $ 6.800 and is about to collapse from the crucial 50 RSI area. Looking at the RSI Stochastic Oscillator, it is pointing down, while there is still more room to go down. Bitcoin bulls would expect to see a daily close above the $ 6800 level; however, as it seems now, the chances are low. Maybe if there will be a green day on Wall Street, as we know, the correlation of the last weeks between BTC and the markets is almost identical.
If we talk about supports and resistances, After breaking the $ 6.800 level, it becomes the first resistance level. In case Bitcoin can break above, then the next target would be $ 7.000, higher is $ 7.200.
From below, Bitcoin found support around the $ 6.550 - $ 6.600 level. Was it just temporary support? Could be. Bitcoin could visit $ 6.400 in the event of a crash, and even lower in the $ 6.000 - $ 6200 zone as its next destination. A Despite recent price action, and likely due to the weekend, volume it was not very significant . It will be interesting to see how Monday's candle closes by volume.
