Bitcoin Price Prediction: BTC/USD V-shaped reversal unsustainable, breakdown to $5,000 lingers

Bitcoin price upward momentum fails to break the critical resistance a $7,000.
BTC/USD sharp V-shaped reversal from recent lows under $4,000 seems unsustainable amid increased bearish grip.

Spot rate: $6,699

Relative change: 9.48

Percentage change: 0.15%

Trend: Bearish

Volatility: Low

BTC/USD daily chart

Bitcoin price is vulnerable to losses likely to test $5,000 as long as it stays under the critical $7,000 zone. According to an analyst on Twitter, MacroCRG, the sharp V-shaped recovery from the recent fall under $4,000 is not sustainable. In his view, Bitcoin could make a downturn back to $5,000 before a formidable recovery is achieved.

If we do get a pop into the yearly open I think it would an absolute screaming short.

This V-shaped reversal is absolutely not sustainable, IMO.#BTC pic.twitter.com/ECbHER9Weo
— Cal▪️ (@MacroCRG) March 26, 2020

The building bearish momentum is emphasized by the 50-day SMA double-cross under the 200-day SMA. This shows that seller influence over the price is growing. Moreover, market volatility is still high amid the chaos caused by the Coronavirus pandemic. I expect fresh interest in BTC at a lower price between $5,000 and $6,000 as investors buy low in readiness for a rally post Bitcoin halving.

Resistance one: $6,832 – Highlighted by the previous high 1-hour, Bollinger Band 15-minutes upper curve and the 61.8% Fibonacci one-day.

Resistance two: $6,972 – Highlighted by the previous week high and the pivot point one-day resistance one.

Support one: $6,692 – Highlighted by the BB 15-mins lower, SMA 200 15-mins, SMA 50 1-hour and the previous low 4-hour.

Support two: $6,482 – Highlighted by the BB 4-hour middle curve and the previous low one-day.

Share: Cryptos feed

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.