- Bitcoin price failed to break above $7,000 during the recovery on Friday; bulls now struggle to hold above short term $5,800 support.
- Technical levels and the formed bearish flag pattern hint that BTC/USD is doomed to return to $5,000 in the coming days.
Bitcoins price staged a recovery on Friday last week where it closed in on $7,000. However, the anticipated jump above $7,000 failed to materialized, allowing the sellers to get back into the driver seat. Over the weekend, Bitcoin continued with the retreat under $6,000. At the time of writing, BTC/USD is trading at $5,852 following a 5.53% loss in the last 24 hours and a 0.48% gain on the day.
Selling pressure is still high in the crypto market amid skepticism that recovery is possible. However, a semblance of stability means that volatility levels witnessed in the past two weeks are unlikely to reoccur.
Bitcoin price recovery has been very erratic in the last couple of weeks. $7,000 has come out as the key seller congestion zone while $5,000 is the key support. If declines continue under $6,000, $5,500 will provide immediate support.
BTC/USD remains bearish both in the short term and medium term based on technical indicators and chart analysis. The formation of the bearish flag pattern hints that a return to levels around $5,000 is possible. In addition to that, the 50-day SMA possible slide under the 200-day SMA means that the sellers will remain relatively control in the coming days, perhaps weeks.
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