Today every bit the endmost bell rang at Wall Street, Bitcoin (BTC) price corrected sharply, pulling back below $6,000 less than 24-hours afterwards hitting a seven-solar day high at $6,900. The $1,000 drop from $6,670 to $5,670 is sure to take shocked investors equally it is slightly below analyst'south price correction estimates but at the time of writing information technology appears that traders are buying into the dip.

Crypto market daily performance. Source: Coin360

Crypto market daily performance. Source: Coin360

The price has bounced at $5,700 and currently bulls are pushing it dorsum above $vi,200. After this week's stellar 82.4% recovery from $3,775, Bitcoin was somewhat overdue for a pullback and every bit discussed in previous analysis the toll was expected to retest underlying back up at either $five,900, $5,500 or $five,380.

BTC USDT 4-hour chart. Source: TradingView​​​​​​​

BTC USDT 4-hour chart. Source: TradingView

Despite the $1,000 drib to $v,670, the RSI on the 4-hour timeframe remains in an uptrend, higher up the ascending trendline in bullish territory with a reading of 62.

The MACD has begun to curve downward from the overbought region but the momentum on the histogram remains steady and buy volume is on par with the sell volume that preceded the pullback.

If bulls can repossess the $half-dozen,400 level and close hither that would exist a victory for Bitcoin price.

What to lookout for

Over the adjacent 4 to 6 hours, traders should keep an eye on trading book on the shorter time frames and also watch to run into if the RSI dips beneath the rising trendline on the 4-60 minutes timeframe.

At that place is also a Dragonfly Doji candle on the 4-hour chart suggesting that even though bulls absorbed the selling past buying into the pullback there is yet the possibility of a curt-term trend reversal, as hinted past the MACD, RSI and ailing purchasing volume.

BTC USDT daily chart. Source: TradingView​​​​​​​

BTC USDT daily chart. Source: TradingView

In the event of a short-term tendency reversal, traders will await for a bounciness at the $five,450 support where a high book node of the volume profile visible range resides. Ultimately, afterwards a potent upsurge from the weekly low, Bitcoin needed to retest underlying support anyhow, hence the reason bulls have strongly bought into the current dip.

The views and opinions expressed hither are solely those of the author and practise not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should acquit your own research when making a decision.