06 Feb Bitcoin Price Analysis – What’s Next For BTC/USD?
BTC has now broken down below the $7,000 level, which could be a legitimate sign of concerns for investors right now. However, there are some recent developments that we need to consider before making our next moves:
- India is looking to crack down on cryptocurrency
- Major banks around the world have placed bans on credit card purchases of Bitcoin
- The stock market just experienced its worst week in two years
- The Federal Reserve may look to hike interest rates once again
What this means: There is a market-wide panic that might have started a cryptocurrency sell-off, but that doesn’t mean this is an “end of the world” scenario.
What’s Next For BTC
At the time of writing, BTC has bounced back above $7,000, so this seems to be a newly established support level after the recently stated $8,000 and $10,000 levels were generally accepted by investors.
The good news is that it is still trading above the 23.6% Fibonacci retracement level (a good indicator for support levels), so a rebound is still likely.
Again, investors need to be patient as the entire market is in disarray at the moment, and a testing of the previously stated $9,150 resistance is still likely.
Looking at the technical indicators:
- MACD — this indicator is showing a bullish sign as the signal line approaches the MACD line
- Volume — volume is picking up in the last few hours, so there could be a movement up
- Major resistance level — $9,150
- Major support level — $7,000
Featured Image: twitter