Just as Bitcoin started to recover during the opening week of June, the price slump continued, which dropped Bitcoin price back to the February 6 lows. Total market capitalization is currently down at the $260 billion level. As of press time, Bitcoin price is trading at the $6,270 level, which is a 6.5% decrease in the last 24 hours.
Bitcoin dominance is at the 40% level, which means that as Bitcoin is currently struggling to gain upward momentum, altcoin prices are also having a major slump.
Looking at the charts, it seems that the Bitcoin price is currently still below the descending trend line with starting point at the beginning of the year. On June 12, the price bounced from the 1.00 Fibonacci level, and failed to break above the trend line. The rejection of the break plummeted Bitcoin price back to current level, supported by the triple bottom formation.
The MACD is barely above the signal line, which means that momentum has not yet convincingly recovered. A small downward arch is forming on the MACD, which could break below the signal line in the coming days. The RSI made a slight bounce back from the oversold region, but is currently arching back down. The MACD and the RSI indicate that trading momentum is currently in favor of the bearish sentiments.
We could see further declines in the coming days, especially if the MACD makes a clear break below the signal line, and the RSI goes back down to the oversold regions. The re-test on the 1.00 Fibonacci support level will be a crucial point for Bitcoin. A break below the support level could plunge Bitcoin to the $5,100 level, which is a support area back in October and November last year.
- Bitcoin price is currently at the $6,270 level, which is the 1.00 Fibonacci support level.
- MACD and RSI analysis indicate that further decline in price could be ahead.
- The next support level is the $5,100 October-November 2017 support level.
(DISCLAIMER: This is not financial advice. The analysis and recommendations provided here are based on my own research and personal opinion. Trade wisely!)