Bitcoin Price Forecast: BTC/USD Could Break $5K

Bitcoin price is in a major downtrend below $6,800 against the US dollar. BTC/USD is currently at a risk of more declines below the $5,500 and $5,000 support levels.

During the past few weeks, bitcoin faced an increased selling pressure, resulting in a downside break below the $6,800 support. It dragged the whole cryptocurrency market and pushed altcoins such as Ethereum, Ripple, Bitcoin cash, Litecoin and others with it.

Key Points

• Bitcoin price is facing a crucial resistance zone near $6,400-6,500 against the US Dollar.
• There is a breakout pattern formed with resistance at $6,200 and support at $6,050 on the 4-hours chart of the BTC/USD pair.
• The pair is likely to break down and clear the $5,600, $5,500 support levels.

Bitcoin Price Forecast and Analysis (BTC/USD)

Bitcoin price started a major bearish wave from well above the $7,000 level against the US Dollar. The BTC/USD pair tumbled and broke the $6,800, $6,500 and $6,000 support levels (chart data feed of Coinbase).

During the decline, there was a breakout pattern formed with support at $6,650. The price failed to hold the $6,650 support, declined sharply below $6,000, and settled below the 100 and 55 simple moving averages (4-hours).

A low was formed near $5,770 before the price started an upside correction. BTC price traded above the 38.2% Fibonacci retracement level of the last drop from the $6,820 high to $5,773 low.

However, the upside move was capped by the $6,300 resistance. More importantly, the price failed near the 50% Fibonacci retracement level of the last drop from the $6,820 high to $5,773 low. It means the price completed an upside correction near $6,300.

At the moment, there is a new breakout pattern formed with resistance at $6,200 and support at $6,050 on the 4-hours chart of the BTC/USD pair. It seems like the pair may perhaps replicate the previous pattern and decline sharply below the $6,050 support.

Below the $6,050 support, there is a risk of more losses below the $6,000 and $5,700. The next support is at $5,500, below which, BTC to USD could revisit the $5,000 level.

Therefore, bitcoin buyers must keep a close eye on the $6,050 and $6,000 support levels in the near term.