The last month has been nothing but tumultuous for Bitcoin, as its price surged from around $5,700 to $9,000 to mark a notable increase of about 57%. The last seven days, however, haven’t been so good for the major cryptocurrency, as the price saw a serious drop below $8,000. During the past few days, Bitcoin has been trading in the range of around $7,800 and it’s important to outline key levels to watch for.
Commenting on the price action of Bitcoin following the latest retracement, popular cryptocurrency trader Josh Rager has outlined a few important areas to keep an eye on.
Using Fibonacci retracement metrics, Rager outlines a few key levels where Bitcoin may find certain support.
$BTC Pullback Areas
The lowest I see Bitcoin pulling back is the .618 fib ($5404) as any lower would be bearish, IMO
Major confluence w/ previous support/resistance between $6109 to $6814
I’m personally watching for a bounce in this area with major interest near $6400 (VPVR) pic.twitter.com/WpvzOxdZzU
— Josh Rager 📈 (@Josh_Rager) June 6, 2019
As seen on the chart, there are a few of those levels. The first one is found at the 0.236 Fib at $7,841. This coincides with what Cryptopotato laid out in its last BTC price analysis, outlining that Bitcoin is facing the $7,700-$7,800 supporting trend-line.
The next retracement level is found at 0.382 Fib which lies at $6,826 followed by the 0.5 Fib at $6,121. According to Rager, this is where there is a major confluence with previous support and resistance levels and this is where he’s expecting a bounce followed by “major interest near $6,400.”
The lowest he sees Bitcoin pulling back to is the 0.618 Fib at $5,404. The trader outlines that if Bitcoin breaks bellow down that line, this would suggest that the bears have managed to reverse the trend in their favor.
Another thing worth noting is that the latest decline in Bitcoin’s price dragged the entire market down without seeing a major change in the BTC dominance index. At the time of this writing, it sits at around 55.6 percent which is an insignificant decrease throughout the past seven days.
We saw almost every major altcoin bleeding alongside Bitcoin and most of them failed to capitalize on the leading cryptocurrency’s decline.
Of course, there are always exceptions. The latest IEO of Binance, Harmony (ONE) saw a massive surge of its price against BTC. ONE is up 23 percent against BTC in the last 24 hours alone, marking 23 percent gains against the USD as well and reaching new all-time high values against both.