Bitcoin price has not been able to hold the key level that the asset was trading admirably above for most of last year, and the disappointment by bulls to keep up the critical support level could highlight targets to the downside.
As indicated by one noticeable cryptocurrency analyst, the “Cloud” has become resistance on the 4-hour time allotment, and just “flipped red” after the failed attempt to reclaim highs.
Since the support level was lost, two ‘untested’ support lives stay beneath, as per the crypto trader.
$6,400 & $5,400 Are Next Logical Bitcoin Price Targets
As the Cloud flipped red, it flags that bullish momentum could not defeat bearish selling pressure, bringing about bears regaining control of BTC price.
Further selloff could happen, as the harm done to market structure following the COVID-19 pendemic mid-March still can’t seem to be fixed, and a sustained recession is likely ahead.
In case additional downside hits Bitcoin (BTC) price in the next few days or weeks, the next logical targets exist at $6,400 and beneath it at $5,400.
A same trader who asserts the Cloud has become resistance points to two untested territories of support below, at those two value levels.
On the way back up in March and early April, Bitcoin (BTC) price directly past these levels and stayed away forever to them to affirm them as support before moving higher.
The dominating digital currency by market capitalization may need to fall lower, affirming those areas as ironclad support, before bulls have the certainty to push Bitcoin price ever more elevated.
The 200-moving normal is likewise situated close to the $6,400 range, making it a perfect spot to take a long position where an inversion may come to fruition.
With the asset’s halving just around the corner, the digital currency could detonate to new highs as it has previously, making it the next fall to support among the most basic yet for Bitcoin cost.