Bitcoin (BTCUSD) Bears Now Target the $6,500 Mark

Bitcoin – BTCUSD has lost over 10% this week after it broke the $7,000 mark that was strong support for the crypto pair. The selling pressure attributed to one of the largest Ponzi schemes in China, the PlusToken.

PlusToken was a crypto-wallet that would reward users with high rates of return if investors purchased the wallet’s associated PLUS cryptocurrency tokens with BTC or ETH. The reports show that the Ponzi scheme has attracted two to three billion worth of cryptocurrencies. The stolen funds have cashed out through various brokers the last trading sessions and the excess supply pressured cryptocurrencies.

Bitcoin is 0.01% lower today at $6,610, close to seven-month lows. BTCUSD selling pressure accelerated after the crypto pair broke below the $7,000 psychological mark.

The Bitcoin capitalization has dropped at 120.91 billion, while the total crypto market capitalization lost yesterday over 12 billion and now is 178.65 billion. The volume in the last 24 hours has reached 25.07 billion, above the average.

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Bitcoin at Seven-Month Lows

Bitcoin outlook is negative and the bears are looking for a break below $6,500 mark. BTCUSD has trapped into the downtrend channel which started back in July and drives bitcoin price to the downside.

Immediate support, for bitcoin now stands at $6,580 today’s session low. The next support stands at $6,528 – $6,500 zone the low from yesterday’s session. If bitcoin breaks below the $6,500 the next support will be met at $6,160 the low from May 17th.

On the upside, first resistance for bitcoin stands at $6,717 the daily high. If bitcoin managed to breach the daily top, then buyers will target the $6,884 the high from yesterday. Crypto investors might enter a long position if BTCUSD breaks above the $7,000 psychological mark the next resistance stands at $7,135 the December 16th high.

A warning signal for Bitcoin bulls is that the RSI (14) has reached oversold levels at 29.68, so a sharp rebound can’t be ruled from these levels.

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