After trading in the $6,450 to $6,850 range for the past eight days, Bitcoin (BTC) price finally made a larger move, this time to the downside, as the digital asset dropped 8.72% to a daily low at $6,068.
The move somewhat mirrors the performance of traditional markets, which also closed the day with losses. The Dow closed with a 915 point loss, the S&P 500 pulled back 3.37% and the Nasdaq was down 3.79%.
Crypto market daily price chart. Source: Coin360
The break below $6,550 pulled the price below the ascending trendline and the $6,450 support. Traders had anticipated that a sharp move was on the cards after the price had traded sideways on declining volume for the majority of the week, also failing to push above $6,850 and flip the resistance to support.
BTC USDT 4-hour chart. Source: TradingView
At the time of writing the price sits atop the 12-MA (daily timeframe) and traders are attempting to recapture the $6,200 support. If this effort fails then a retest of $5,800 and $5,350 is possible.
Over the short term, Bitcoin price needs to first retake $6,200 then push above the high volume VPVR node at $6,335 in order to re-reach the $6,500 range.
Earlier this week, Cointelegraph contributor filbfllb commented that the likelihood of Bitcoin price reaching $10,000 before May is slim to none. filbfilb explained that:
“Bitcoin is trading up against what is a fundamental decision point at $6.8K. This is previous support now acting as resistance and the top of a high volume node which is dissected by a diagonal resistance trend line, which dates back to mid-2019.”
According to filbfilb, Bitcoin price is approaching a pivotal moment and:
“If the bulls are unable to regain the $6,800 level, the 200-week moving average is lying below at around $5,500 on a high volume node, which was previously front run in the last attempt to break $6,800. Should the bulls find their feet again, diagonal support will be found at $6,250.”
Bitcoin daily price chart. Source: Coin360
Altcoin prices also took a tumble as Bitcoin price corrected. Ether (ETH) dropped 7.07%, Bitcoin Cash (BCH) lost 9.33%, and Tezos (XTZ) pulled back 11.08%.
The overall cryptocurrency market cap now stands at $172.9 billion and Bitcoin’s dominance rate is 65.1%.