Bitcoin price under pressure, stays under $7000

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Bitcoin price has dropped significantly against the US dollar, now trading in a bearish zone of $6600. The price could drop further to $6,400.

Interestingly, bitcoin had just recently recovered from its last plunge on April 12, after price climbed up to about $7,200. Unfortunately, the bulls could not support the momentum as the market plunged again to the low of $6,600.

After reaching support levels of above $6,700, bitcoin price started to surge against the US dollar. BTC price rose above the $6,900 and $7,000 levels. But it could not keep the bullish momentum going.

It looks like the price of bitcoin got rejected above the $7,000 price level, with the 100-day-moving-average confirming such bias. Similarly, there is a strong bearish trend line forming at a resistance level near the price of $7,150 on the hourly chart of Bitcoin.

(READ MORE: Bulls push Bitcoin pass $7,200 mark)

The cryptocurrency pair formed a high near the $7,218 and dropped significantly. It retracted all its gains and even broke the $6,700 support area level on Monday. A new weekly low formed near the $6,560 level and the price is currently going higher. to about $6800.

READ MORE: Interest rate on T-bills heads for single digit, as investors seek higher returns 

Bitcoin is trading near the level of the 23.6% Fib retracement level of the recent drop from the $7,218 high to $6,759 low. A sudden resistance on the upside is near the $6,750 level.

More downsides? If bitcoin does not reach the level above $6,750 or $6,900, there is a higher probability of it dropping further down the closest support level is near the $6,600 level, below which Bitcoin might even fall below $6,500.

The next important support level is around the $6,400 level, followed by $6,250 where the bulls are likely to back down further

Technical indicators: Major Support Levels – $6,500 followed by $6,250. Major Resistance Levels – $6,850, $7,000, and $7,200.