BTC Wires

Bitcoin Price Get a Rejection of $6.9K

The Bitcoin (BTC) has showcased tremendous growth in the recent past, as it started from $3,750 and reached $6,900. This rapid growth of $6,900 remained constant to confirm as resistance. Moreover, recently the same movement took place in the equity markets, as the United States equity markets showcased 25% in just a week.

If we loop onto the chart, it displays that a clear rejection at the $6,900 level is not intended with a bullish perspective. For bullish momentum, the $6,900 is expected to be cleared. This reacts as the targets of $7,800 and $9,200 are back on-board.

To address close areas, there are $5,600-$5,800, $4,750-$4900, and $4900 and $4250-$4,400. All these mentioned parts have higher timeframe support levels and should be used for potential long opportunities. Furthermore, the levels consist of $63550-$6400, $6,550-$6575, and $6,850-$7,000. 

The weekly time frame displays a clear picture. The resistance is the 100-Week MA at $6,900, the support levels are found at the 200-Week MA and 300-Week MA. The market is generally behaving maturely and taking a long time to reach on the top after the previous cycle is performed. This statement concludes that the current cycle will be longer than the previous one. Talking more about the previous cycle, a bottom format in the $3,800-$4000 part would not be anything interesting to investors for months. The bull market is expected to begin in the year 2021 with the forecast to 2025-2026. 

The price of Bitcoin showcases a bearish outlook- while still having a positive correlation to the equity markets. The downfall in the future would be unsurprisingly expected. The bubbles provide a 38-50% retrace in the first drop. The Dow Jones index dropped down to 40% and reached the level at 18,000 points with an upward of 25% in a year.

As this is not new in the market, equity markets have experienced some unusual movements in the cryptomarkets and also have witnessed the most potential growths in recent weeks. The index of Dow Jones rises with 25% in one week despite a new record of unemployment claims and a big stoppage due to the coronavirus pandemic.