In one swift move Bitcoin just cleared most of its winnings that were accumulating in the previous couple of days.
For the time being the price seems to have found support around the psychological barrier of $5000. Around the same area lies the
23.6% Fibonacci retracement level.
The red candle it formed the day before yesterday showed us that there is a strong resistance at 38.2% Fibonacci retracement or $5532.75. If the price can keep above $5000, we will most likely see a gradual attempt towards the next resistance once more.
However should we break the $5000 psychological barrier, there will be room for a drop towards $4325. In my opinion this is very likely because the Relative Strength Index on the daily is still well around 60 meaning there is quite a lot of room left for the bears to take control in the short term.
Looking at the hourly chart, the price sharply fell through the 200 exponential moving average and has since then failed to recover quickly.
However the Relative Strength Index on the hourly is currently around level 20 showing oversold conditions therefore it may be possible that the price will attempt to move towards $5300 later today.
This post was written by ynef