Failure of a bearish pattern should attract strong buying. Though Bitcoin (BTC) broke out of the descending triangle pattern on Oct.15, it has failed to sustain the higher levels. A lack of follow up buying and the failure of bulls to sustain the prices above $6,831.99 is a bearish sign. If the bears breakdown of the immediate support at $6,500, a fall to the next support at $6,200 is probable.
The BTC/USD pair has held the critical support zone of $5,900–$6,075.04 on numerous occasions in 2018. A breakdown of this support can trigger protective stops on the long positions, quickly dragging prices to the lower levels of $5,450 and $5,000. Therefore, traders holding long positions can keep a stop loss of $5,900.
The digital currency will show signs of a reversal if it sustains above $6,831.99. After this overhead resistance is crossed, a quick rally to $7,400, followed by a move to $8,400 is probable.
We expect the price to either breakout or breakdown of the $6,831.99–$5,900 range within the next few days, resulting in a new uptrend or a downtrend.