Bitcoin price has struggled to regain the same powerful bullish momentum it had starting in April through July, but crypto bulls also haven’t given up the fight and have managed to keep Bitcoin price from falling far below $10,000.
But that fall deep below $10,000 may be coming sooner than expected if the weekly MACD turning down is any indication of the trend change to come. If $10,000 breaks, one crypto analyst says that Bitcoin may fall below the median range toward the lower trading range, which as a bottom $6,000.
Former Bitcoin Price Broken Bottom at $6K To Act As Bottom of Trading Range
Bitcoin price has taken so many trips to test support at $6,000, it’s difficult to imagine doing it again, and potentially again and again after that.
Throughout the 2018 bear market, $6,000 acted as seemingly unbreakable support after each gradually decreasing peak was rejected. Eventually, in November 2018, $6,000 gave way, and Bitcoin price fell to its eventual bear market bottom at $3,200.
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On the way back up, $6,000 was expected to act as impossible resistance to beat, but instead Bitcoin price cut through it like a hot knife through butter. Now, the leading crypto asset by market cap may make another trip downward to test $6,000 as support once again, and crypto investors will be hoping and praying that it holds up better than the last time it was tested as support.
https://twitter.com/traderx0x0/status/1164809197004791810?s=12
According to TraderXO, a prominent crypto analyst, the weekly MACD is turning downward for the first time since Bitcoin peaked at $20,000. The MACD is an indicator that can help predict trend changes by gauging the buying or selling momentum.
Momentum is clearly pointing down, and will likely drag Bitcoin price down below the upper portion of the greater trading range from between $10,000 and $14,000, to the lower half of the trading range from $6,000 to $10,000. This suggests that Bitcoin could be in a larger trading range between $6,000 and $14,000 for the foreseeable future until support or resistance gives in either direction.
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The crypto market fear and greed index is currently at among the lowest its ever been historically, yet Bitcoin price has barely corrected. A fall to $6,000 will likely break out investors who believed that the bottom of Bitcoin was already in, and given how $6,000 failed the last time around, most will not find much comfort or confidence in it holding once again.
However, other crypto analysts believe that first-ever crypto asset has embarked on its bull run, and a correction of that magnitude simply will not play out. But the weekly MACD says otherwise. Only time will tell if Bitcoin does correct further, or blows bears away with another parabolic rally.