Bitcoin (BTC) Just Fell Below $61,000 Amid Fears of Continued Selling by the US and German Governments and Potential New Sales by Mt. Gox BTC Holders. Will the Decline Continue or Is BTC at the Bottom or Near It Now?
Bulls or Bears?
Bitcoin has been trading at the lower end of its range and below $63,000 for the past ten days. Buyers and sellers are engaged in a Battle Royale between the $63,000 and $60,000 price levels, and it’s still unclear whether the bulls or the bears will prevail.
Will BTC Drop to $60,000 Next?
Source: TradingView
In the very short-term 4-hour timeframe, it appears that the $BTC price is trying to stay above the very important support level of $61,000. If it can maintain this level for the next two days, the short-term stochastic RSI for the 4, 8, and 12-hour charts will be able to reset and then start to restore upward momentum to the price.
$51,000 Is a Bearish Assumption
However, as noted on the chart, the $BTC price has just begun to break down below support. If this analysis continues, $60,000 and then $58,000 are likely the last lines in the sand before $BTC potentially drops to $51,000.
Source: TradingView
Zooming out to a more macroeconomic perspective, the weekly chart shows that the $BTC price could drop to the $60,000 support level. There is still a small amount of support between $58,000 and slightly above $57,000, but once $BTC confirms a move beyond that, the next likely stop could be $51,000.
Can the Weekly Stochastic RSI Provide the Rebound Momentum?
That said, the bullish case suggests that we could bounce anywhere from here up to $57,000 and then reach the top resistance at $71,000 before breaking through and moving higher. The weekly stochastic RSI would be the momentum behind this kind of movement. Having reached the bottom, this indicator might return to an upward position as early as next week, bringing a strong surge of momentum to the $BTC price.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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