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 stated that a price move was imminent once the new week began after the Wall Street futures market closed . Shortly after, Bitcoin initiated a decent move to retest the significant support at $7.200, along with the 50-day moving average. The rejection proved false, and Bitcoin quickly plunged $650, marking $6.540 (Bitstamp) as the current daily low. This is the lowest price Bitcoin has seen since April 1st, 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're talking about support and resistance levels , after breaking the $6.800 level, it becomes the first resistance level. Should Bitcoin break above this, the next target would be $7.000, with $7.200 below it.
From below, Bitcoin found support around the $6.550–$6.600 level. Was this just temporary support? It could be. Bitcoin could visit $6.400 in the event of a collapse, and even lower in the $6.000–$6200 zone as its next target. Despite the recent price action, and likely due to the weekend, volume wasn't very significant . It will be interesting to see how Monday's candle closes in terms of volume.