Bitcoin price made a very downward move with its movement in the direction of the $6,000 mark, therefore stating its bearish attitude.
A slight rebound from yesterday’s low at around $6,300 is the result of a short-term oversold outlook on the RSI indicator. Such a rapid resumption of the downward movement only confirms the firmness of the bears’ intentions, with all their might trying to squeeze the price even lower.
Technical indicators confirm the dominance of sellers in the market. Thus, we should not discount the probability of a price return to the February lows near the $6,000 mark.
On the hourly chart, you can see a confident breakdown of the pattern “Wedge”. Also worth noting that moving averages with periods of 200, 100 and 50 are located one under the other “by seniority” and are tilted down. Moreover, the relative strength index (RSI) interrupted the upward movement and again returned to the oversold zone.
On the daily chart, you can see how the price has confidently broken the “Ascending Wedge” figure. This indicates the end of the rally from the August 14th mark of $5,859, which signifies the resumption of bearish sentiment.
At the same time, RSI is at the mark of 40, which indicates the availability of the potential for further decline, since it is still far from the overselling zone.
Summarizing the above, it can be noted that the BTC can find support at $6,300, corresponding to yesterday’s low. If the downward movement continues, the next support will be the key level of $6,000, which can be reached in the coming days.
The closure of a weekly candle below $6,000 will signal a long-term resumption of the bear market.