Bitcoin has broken down of both moving averages and the small trendline support. This shows that the sellers have the upper hand in the short-term. However, if the bulls manage to scale the price back above the trendline and the moving averages, it will indicate demand at lower levels.
The longer the price remains below the downtrend line of the descending triangle and the moving averages, the greater are the chances of a retest of the critical support zone of $5,900–$6,075.
A break out of the downtrend line and $6,831.99 can propel the pair to $7,400, which in turn might act as a strong resistance.
We expect the BTC/USD pair to make a decisive move within the next week. As the price is close to our buy levels, we suggest traders hold the long positions with the stops at $5,900.
Cointelegraph