The bearish market bias has been setting in for a while. This started shortly after the SEC decided to delay their decision on the Bitcoin ETFs for such companies as VanEck and SolidX. This is confirmed by ForkLog.
According to CoinDesk analyst Omar Godbole, the downtrend is going to persist in the near future, driven by the bearish market bias. In particular, he expects the world's first cryptocurrency to drop all the way down to 6000 USD/BTC.
At the same time, NordFx experts report that yesterday Bitcoin traded around 7100 USD/BTC. Clearly, the SEC's decision reinforced the bear's position in the global cryptocurrency market. This made Bitcoin drop all the way down to 6360 USD/BTC earlier today. At this point, the world's first cryptocurrency has regained a bit of the lost ground and is now trading closer to 6500 USD/BTC.
Analysts Expect Further Bitcoin Downtrend
A more-than-7% drop seen over the last 24 hours lead some experts to belive that the July recovery seen in the global market of Bitcoin may well be over now since it had been driven by the speculations over the possibility of the SEC approving the Bitcoin ETFs. Such ETFs could have attracted billions of dollars coming from institutional investors from all over the world. Now this option is delayed at best.
The Daily chart indicates the price breaking above the trend line built through the lows of June 29th and July 12th. The slope of Moving Averages 5 and 10 indicates that the current market bias is clearly bearish. The BTC price is way below MAs 50, 100 and 200. The RSI oscillator also indicates that the bears look really determined to aim for new local lows in the near future. The oscillator has nearly got oversold.
All of these factors indicate a possible move down to the $6000 threshold in the ner future. However, since the oscillator is almost oversold, the exports don't deny the possibility of a short-term correction or a flat market before another move down.
The H4 chart indicates a fake break above the upper border of the sloping channel followed by a slowdown close to its lower border, only to find itself below MA 200. THe RSI is below 30.00, which indicates the ened of the current tendency. A flat market is highly probable close to 6500 USD/BTC, which may last for a day or two. This may be followed by a move to 6000 USD/BTC.
A confident rally may start only if the price breaks and consolidates above the top of the sloping channel. If that's the case, we may well see a further rally up to 7000 USD/BTC and even higher.
