Bitcoin trending down: Are we headed back to $6k?; will alts pump?

Today, the entire market is in the red, but this was expected after markets spell of green yesterday. Retracements after a heavy increase in price are perfectly normal. We already saw a sharp drop in price during the night pushing us down to $7000. Will Bitcoin continue down? Time for some technicals!

Highlights:

– $8.4k strong resistance for the moment

– Retrace to $6000 possible

– Altcoins to continue rising?

$8.4 strong rejection

Starting off on the daily we can see our call for $8.4k is proving strong resistance since it was denied quite sharply soon after the target was hit. RSI has made its ways back below 70 sitting at a value of 66, which is still bull territory. When RSI is between 40 and 50, we will likely see Bitcoin find support. Stoch RSI is showing us that momentum has reached the ceiling and is now falling to find its floor (support). These are not bearish signals, but it does indicate we will be moving down to the next support level.

On the daily, our next support level is around the $6000 mark. This is a good support level because $6000 was the floor for most of the bear market in 2018. Since Bitcoin has depicted a very sharp increase for almost 50 days, we should assume that $8.4k is the top for now and the Bitcoin will either make its ways to the next support or push sideways for a bit while altcoins take the spotlight.

BTC/USD chart provided by Tradingview

More downside on the way?

Looking at the hourly RSI we see a solid downtrend with momentum and no clear signs of this dip ending just yet. We will have to wait for Divergence to start forming before we start returning to the upside. If we measure the length of this first dip from $8.4k and we move it down to the current price, we can see Bitcoin will find support at $6000 in case we get another dip of the same length.

BTC/USD chart provided by Tradingview

BTC/USD chart provided by Tradingview

Altseason to continue?

While Bitcoin makes its way towards its next support level we can expect alts to continue rising. With a lot of money flowing into Bitcoin many of the traders will look to put their Bitcoin where it can make them gains instead of losing value holding Bitcoin while it finds support.

Is $6000 possible for Bitcoin, or are we too bullish and will continue rising higher? Let us know what you think in the comments below!

Disclaimer: Keep in mind this not investment or trading advice, just the opinion of our analysts. As always, do your own research, make your own decisions.

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