- Bitcoin is down 1.17% on the day after breaking the support at $6,500.
- BTC/USD could increase the gains to $6,700 the triangle resistance is broken.
The market is mostly gloomy on Wednesday and cryptocurrencies are trading in the red. Majority of the digital assets record declines between 1% – 5%. Bitcoin (BTC), for instance, Bitcoin is down 1.17% on the day after breaking below the support at $6,500. Towards the end of last week, BTC/USD approached $6,800. However, lack of momentum led to trimming of gains. On the contrary, in the past couple of days, Bitcoin stayed stable above $6,500 avoid huge leaps in either direction.
Bitcoin also settled in a bullish channel and the buyers are still battling to defend the support at the bottom of the channel. Similarly, there is a triangle pattern on the 15-minutes chart. This also means that a breakout is approaching. It is essential that the buyers defend the triangle and the bullish channel support. Otherwise, a break below this region marginally above $6,400 could result in more declines that could test the next support areas at $6,300 and $6,200 respectively.
The price is trading below the 50 SMA and the 100 SMA. However, the RSI is retreating from the oversold region signaling that the buyers are regaining control. Likewise, the MACD momentum indicator is heading upwards but still in the negative zone. At the moment, the supply zone at $6,600 is out of reach but if the bulls can break out of the triangle resistance BTC/USD could increase the gains to $6,700. The ultimate medium-term resistance is at $6,800.
BTC/USD 15′ chart