The Bitcoin news today show that BTC extended its bearish correction at the start of this week and fell briefly below $9,000 for the first time in three weeks. However, the digital asset regained strength afterwards and now we can see that if one fractal plays out, Bitcoin could go back to $6,000 which would be more bad news for analysts.
The chart pattern hints a recurrence as BTC extends its bearish correction from a local high above $10,000. Meanwhile, all the technical indicators such as the two weekly moving averages and a momentum gauger indicator (the Relative Strength Indicator or RSI) are also validating this fractal.
If all of this plays out, the cryptocurrency news show that Bitcoin could go back to $6,000 which is way lower than the expected $10,000 mark that analysts have been betting on this month.
It seems like Bitcoin is extending its bearish correction after testing the long-term descending trendline resistance. So far, the downside move crashed the cryptocurrency by as low as 14.70% in the last three weeks.
Specific patterns are seen emerging near the head of the ongoing downtrend. For instance, we could see that Bitcoin could go back and the 50-weekly moving average (pictured as a blue wave above) is holding the cryptocurrency from extending its bearish bias. However, testing it repeatedly causes a breakdown as we can see from the coin’s history.
At press time, Bitcoin (BTC) is trending in the middle of the Descending Trendline (resistance level) and the 50-WMA (support) line. As the distance between these two parameters contracts, it would leave Bitcoin without any choice but attempting a breakout.
Historically, the Bitcoin breakout was always biased to the downside, as the coin attempted to break the Descending Trendline many times – but failed. In comparison, the 50-WMA stood weaker and allowed Bitcoin to test lower levels.
If the fractal plays out as it wants to, then Bitcoin (BTC) risks crashing towards the 200-WMA. As of now, the orange wave is right near $6,000. At the same time, if the RSI holds above the green support line, then Bitcoin could attempt a breakout above the Descending Trendline support.
At press time, Bitcoin (BTC) is trading at $9,414 without any change.
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