The bitcoin downtrend still remains valid as price continues to produce lower lows and lower highs. Since 25th of July, BTC has lost over 30% to the US Dollar, while price moved from the $8500 down to the recent low at $5850 area.
At the same time strong resistance has been formed at $6500, which is confirmed by the 361.8% Fibs applied to the corrective wave up after the uptrend trendline breakout. The support is seen at $6000, which at first glance seems to be broken, although daily close stays above this key level.
Currently it would be important to watch two levels, first is a $6k support and second is the $6.5k resistance. If the resistance is broken, together with the 200 Moving Average and the downtrend trendline, it could be a strong signal of a potential trend reversal, resulting in a growth towards the $10k psychological resistance. But there will be a daily close below the recent low at $5850, the downtrend is very likely to continue, at least towards the next support at $5500.
There are multiple scenarios of the price development in the coming days, but as has been mentioned already, key support and resistance levels should be watched very closely.
Source: http://cryptopost.com/bitcoin-struggling-to-break-higher/
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