It wasn’t a happy weekend for BTC as it dropped from the strong $7,200 – $7,250 range and is trading at $7,068 at the time of writing.
The whole of last week saw the Bitcoin price trading in a tight range at the lower end of the $7,000s, struggling to show any conviction in breaking through stubborn resistance at $7,300.
What was earlier strong support at $7,200 turned into stiff resistance come the weekend, as Bitcoin dropped below the mark and is now struggling to stay above support at $7,000.
The 50 SMA on the 2-hour chart looks to stop Bitcoin from gaining any momentum on the upside anytime soon. Immediate support lies at $7,030, while immediate resistance is at $7,080, with a slew of resistances at $7,120, $7,160, and $7,200 to follow if BTC tries to make a run on the upside.
The bears seem to be gaining in strength, and the RSI on the 2-hour chart shows that the probability of Bitcoin breaking downwards below $7,000 remains high. If that happens, we could see support at $6,900 and $6,800, below which the price could drop to as low as $6,500.
Meanwhile, for the bulls, the importance of breaking above $7,200 cannot be stressed enough. A break above $7,120 is necessary for a chance at recovery, and a daily close above $7,200 will kickstart that recovery in earnest. Unless that happens, we could see $6,500 on the cards pretty soon.