Bitcoin (BTC) has just dropped under $61,000 amid fears of continued selling from the US and German governments, and potential fresh selling from Mt. Gox BTC holders. Will the decline continue, or is $BTC at or near the bottom now?
Bulls or bears?
Bitcoin has been at the bottom of its range, and below $63,000 for the past ten days. Buyers and sellers are having a Battle Royale between the $63,000 down to the $60,000 price levels, and it’s still not apparent whether the bulls or the bears will end up the victors.
$BTC heading to $60,000 next?
Source: TradingView
In the very short time frame of the 4-hourly, it can be seen that the $BTC price is trying to stay on top of the very important $61,000 support. If this is able to hold for the next couple of days, the short time frame stochastic RSIs for the 4, 8, and 12 hours would be able to reset and then start bringing upside momentum back into the price.
$51,000 is bearish case
However, as noted in the chart, the $BTC price is just starting to break down below the support. Should the breakdown continue, $60,000 and then $58,000 are probably the last lines in the sand before $BTC perhaps falls to $51,000.
Source: TradingView
Zooming out into a more macro picture, the weekly chart shows that the $BTC price could be making its way down to the $60,000 support. There is still a modicum of support from $58,000 down to just over $57,000, but once and if $BTC confirms beyond this, the next stop is probably going to be $51,000.
Can weekly stochastic RSI provide the bounce momentum?
That said, the bullish case says that we will bounce anywhere from here down to $57,000 and reach the top of the range resistance at $71,000 again, before breaking this and going higher. The weekly stochastic RSI would be the momentum behind this kind of move. Having reached the bottom, this indicator may cross back to the upside as early as next week, bringing a powerful momentum surge back into the price of $BTC.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
