Bitcoin (BTC) Technical Analysis: Crypto Market Unravels $28 Billion, BTC Hits All-Year Low, What Next?

In an extreme turn of events, the fire from Bitcoin Cash’s well-documented hardfork war has spread wildly across the entire crypto market, burning through virtually every cryptocurrency and leaving many investors burnt too. 

In the last 24hrs, $28 billion has been stripped from the market, Bitcoin has fallen beyond the support of its long-standing safety net at $5,800, and USDT trading has more than doubled as traders flee from the flames and find safe haven in stablecoins.

Despite these heavy losses, the current bear market is showing no sign of slowing down as BTC continues to slide, now down at over -12% against the US dollar. So how long can this go on for? And, will Bitcoin recover soon? Let’s take a look at the charts and see.

The Story So Far

On the 1hr BTC/USD chart, we can see that the #1 cryptocurrency is now dangerously below its year-long support region at the $6,000 and $5,800 levels; both of which have been critical levels in propping up BTC through all the major bear markets this year.

Yesterday evening the $5,800 support was able to slow down the initial selling frenzy which drove BTC down 10% and gave bulls an opportunity to retrace back to the $5,900 mark. At this point, however, they became exhausted under the mounting selling pressure and bears quickly regained control over the asset.

After bears broke through the critical support, the $5,700 level became the next temporary foothold for bullish traders to push back from and allowed BTC to stabilize briefly through to this morning.

A massive sell-off at 10:00 (UTC), however, drove Bitcoin down again, this time to its new all-year low at $5,560. Fortunately, bullish traders were quick to snap up this new low price point and have since been able to find new support at the $5,600 above.

The Story Right Now

Looking at the candles, we can see that bulls have been struggling to defend each new support level, as bearish sentiment continues to dominate the BTC market. Judging by the indicators at the moment, we get the impression that bears will likely overcome the current support at $5,600 unless significant bullish momentum picks up.

-RSI is now back into the oversold region after briefly recovering out of it

-The 12MA is now bearishly back below the 26MA on the MACD indicator as bearish momentum picks back up again.

-The 5 EMA has not yet crossed above the 8 EMA

Bitcoin (BTC) Price Predictions

Looking at the previous supports so far we can see that psychological levels have been key areas for the price action to fall back on; namely the $5,600 and $5,700 levels.

From this, we should expect the $5,500 and $5,400 price points to be Bitcoin’s next support areas, if the current downtrend continues.