Bitcoin price analysis: Retreats below $6,400; market wipes off $6 billion

In the last days, the 24-hour trading volume for Bitcoin has taken a plunge considerably from $5 billion to the current $3.7 billion. The volume is steadily decreasing and heading towards the yearly low. The dropping volume for BTC is becoming a concern for the short-term market. Besides, for about three months now, Bitcoin has shown incredible levels of stability backed by low trading activity on a daily basis. In the same period, the total market capitalization has declined by $6 billion while Bitcoin dominance is at 54.0%.

Meanwhile, Bitcoin has broken below the range support at $6,400, discussed in yesterday’s price analysis. The lull seems to have come to a halt, although neither the bulls or the traders no what is next for the largest cryptocurrency by market capitalization. Applying various indicators on the chart shows that Bitcoin will continue trimming the gains gradually.

The RSI, for instance, is heading into the oversold region while the MACD which has been ranging above the mean level since the surge on Monday has slipped into the negative region. Moreover, the moving average gap is widening to show that it is the bears' turn, for now.

Bitcoin is trading at $6,361 after it broken the $6,400 support in the evening (GMT) session on Thursday. It has traded highs of $6,409.39 and lows of $6,359.64 on the day. A correction is required soon to ensure that Bitcoin does not continue exploring the levels towards the next significant support at $6,200. In the event declines proceed, the buyers will battle to defend the support at $6,000 as they did last week.

A crypto investor, Roy Blackstone shared his views on the status of Bitcoin and emphasized that the asset must start to gain strength especially when it comes to the daily trading volume. He said that the trend, the momentum as well as trading activity must get a boost for the entire market to get a chance to remain afloat. Blackstone stated:

“It’s not alt season until: ‘long term investors’ sell at breakeven, media hype machine starts, your best friend is getting rich off crypto, alt pumps across the board on exchanges like polo, bitcoin starts to show real strength.”

BTC/USD 60' chart