Bitcoin price has fallen to a new yearly low
Bitcoin price has been affected by the FTX crisis and Sam Bankman-Fried. Could BTC fall to the $6,000 range?
In a previous analysis, BeInCrypto noted that a lower high could be imminent if BTC were to drop below the 0.382 Fibonacci support around $20,200.
Basically, this would be a bearish signal, and therefore reaching the support zone between $17,600 and $18,600 would again be up for debate.
Bitcoin Price Prediction: Will BTC Bounce Bullish?
For the reasons discussed, which seemed unlikely, Bitcoin could fall below the yearly low of around $17,600. Should this scenario materialize, as it has, Bitcoin will find the next significant support at roughly $14,000.
Bitcoin price broke the yearly low of around $17,600 and has set a new yearly low of around $15,700. Unless BTC rebounds now, the price of Bitcoin could drop to as low as $14,000. BTC is already facing significant Fibonacci resistances around $18,775 and $20,000 and barring a breakout, the downward move will remain intact.
Furthermore, the MACD histogram on the daily chart marks lower to the downside and the MACD lines cross to the downside.
A death cross could now be established on the 4H chart again, confirming the downtrend in the short term. Also, the MACD lines are also crossing bearish here and it looks like a continuation of the bearish move. However, there is bullish hope on the weekly chart, as the RSI could show a bullish divergence. After this, the BTC price could bounce back very strongly. The MACD lines continue to cross bullishly on the weekly chart. However, the MACD histogram is starting to mark a bearish low this week.
Can BTC Price Drop Back to $6,000?
After breaking the support between $17,000 and $18,600, Bitcoin could drop to the next support between $10,800 and $14,000. Bitcoin could find the final bottom there. Currently, there are many signs that the bear market is coming to an end.
Finally, the crypto market is in the last phase of the bearish cycle; the surrender phase. Furthermore, the MACD histogram on the monthly chart continues to tick higher.
However, if Bitcoin breaks the support between $10,800 and $14,000 in a bearish manner, Bitcoin could fall as low as $6,000, where the next significant support is.
It is questionable, though, whether Bitcoin could really stay below $10,000 for long and whether the bulls will not vigorously defend this price region. In fact, a scenario similar to the COVID crash experienced in 2020 could be looming, when the crypto market only dipped extremely low for a very short time.
By Audy Castaneda
