- Jacob Canfield, a popular analyst on Twitter believes Bitcoin is headed for $5,500.
- Bitcoin prevailing technical picture drab hence drabbing the bulls’ desire for recovery above $7,000.
The market is recovering slightly following a bloody couple of days. The consolidation over the last weekend culminated in losses on Monday which extended to Tuesday. Bitcoin hit new December lows close to $6,500 while the other top three cryptocurrencies Ethereum and Ripple tested new support zones at $120 and $0.18, respectively. Recovery across the market is insignificant compared to the losses incurred yesterday.
Bitcoin, for instance, is trading at $6,660 in the wake of a 0.68% higher correction on the day. The bulls desire to see the price climb the levels above $7,000. However, the technical picture remains drab.
For instance, the RSI is stuck in the oversold region. At the same time, the gap between the 50 SMA and the 100 SMA signals an increasing bearish pressure. As long as the 50 SMA on the 4-hour chart remains below the 100 SMA, chances are recovery could take a while. Consequently, Bitcoin is not out of the risk of possible losses targeting $6,000.
Elsewhere, a popular analyst on Twitter, Jacob Canfield believes that Bitcoin's downtrend is not over and could explore the lows close to $5,500.
“I think we could see $5,500 personally, as it is the 78.6% from the swing low to swing high, but we may see a bounce or two in between here and there.”
BTC/USD 4-hour chart
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