Bitcoin Gold analysis: $7.00 level key downside target
08:33, 27 February 2020
Bitcoin Gold is back under heavy downside pressure after recently finding strong technical resistance from the $14.00 level.
Bitcoin Gold analysis shows that the cryptocurrency could decline towards the $7.00 level before staging a meaningful recovery.
Bitcoin Gold medium-term price trend
Bitcoin Gold has been under intense selling pressure this week, after the cryptocurrency was forcefully rejected from the $14.00 level earlier this month.
The BTG/USD pair is now trading below its 200-day moving average, and is trading well-below the key $10.00 level.
Bitcoin Gold technical analysis shows that a bearish double-top pattern has formed on the daily time frame, which is placing heavy technical pressure on the BTG/USD pair.
The daily time frame highlights that Bitcoin Gold has an area of untested demand, around the $7.00 level, which bears may soon target.
It is also noteworthy that the mentioned time frame also shows that the presence of bearish MACD price divergence has now been eradicated.
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Bitcoin Gold short-term price trend
Bitcoin Gold price analysis over the short term shows that the cryptocurrency has a bearish short-term bias while trading above the $11.30 level.
The four-hour time frame shows that a bearish wedge pattern breakout has occurred, with the $6.00 level the overall bearish target.
The 78.6 Fibonacci retracement level of the current 2020 high to the 2019 low is found at the $6.60 level.
Ideally, the latest decline in Bitcoin Gold should not exceed the 78.6 Fibonacci retracement level to keep the medium-term bullish case alive for the cryptocurrency.
More conservative traders may wait for the BTG/USD pair to recover back above its 200-day moving average before attempting to buy the cryptocurrency again.
Bitcoin Gold technical summary
Bitcoin Gold technical analysis suggests that the cryptocurrency could fall towards the $7.00 to $6.60 support area. The BTG/USD pair has now turned technically bearish across both the short and medium-term.