Bitcoin [BTC] Price Analysis: Rebound From Key Support Imminent

Bitcoin price analysis
Chart Source: TradingView

Bitcoin [BTC] Price Analysis: Rebound From Key Support Imminent

  • Bitcoin stalling recovery under $8,000 shows signs of bulls getting exhausted.
  • A drop to retest $7,500 key support will create fresh demand for BTC allowing for a reversal above $8,000.

Bitcoin is finally getting into stability following the flash drop on Tuesday. Unlike the immediate recovery from the support at $6,500 in April, this time Bitcoin is lagging the reversal. Besides, market trading is mundane very uneventful. A situation that implies that the buyers are getting exhausting, especially following the rejection from highs above $9,000.

The 4-hour chart shows several broken support levels at $8,500, the 100 Simple Moving Average (SMA) did little to stop the declines and the support at $8,000 caved in culminating in declines that touched the key support at $7,500. Meanwhile, a shallow recovery has stalled short of the support turned resistance at $8,000.

BTC/USD 1-hour chart

Bitcoin price analysis cahrt
Chart source: Tradingview

Presently, BTC/USD is trading at $7,754 amid a steadily growing bearish trend. The inability to jump above the level at $8,000 appears to have demoralized the bulls, in turn, allowing for retracing back to the key support. The current declines are likely to hit a wall at $7,500, a position that will allow fresh demand for Bitcoin among the traders.

Also Read: Bitcoin [BTC] On-Chain Transaction Volume Suggests Bull Run Has Just Begun

The Relative Strength Index (RSI)

The looking the 4-hour 14-day RSI we see an indicator that has been correcting lower below a trendline since mid-May. The RSI avoided the oversold region the entire month of May. However, it dipped to the level at 24 on June 4. The indicator appears to be staging a recovery at the moment but its upside is capped below the 50 average mark. A correction towards the overbought is likely to spike interest in Bitcoin, in turn, pushing the price above $8,000 in readiness for another run to towards $9,000.

Bitcoin Key Technical Indicators

Key Support: $7,500

Breakout point: $8,000

Bullish Indicator: Correction above the 100 SMA

RSI 4-hour: $39.31

MACD 4-hour: Increasing divergence hints further upside growth.

 

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Bitcoin [BTC] Price Analysis: Rebound From Key Support Imminent
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Bitcoin [BTC] Price Analysis: Rebound From Key Support Imminent
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Bitcoin stalling recovery under $8,000 shows signs of bulls getting exhausted. A drop to retest $7,500 key support will create fresh demand for BTC allowing for a reversal above $8,000.
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Author: John Isige

John is a talented writer with over two years of experience actively contributing to the cryptocurrency industry by providing credible, interesting and easy to read the content. His main focus is on cryptocurrency price analysis and industry news coverage. Lets follow him on Twitter at @jjisige

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John Isige 204 Articles

John is a talented writer with over two years of experience actively contributing to the cryptocurrency industry by providing credible, interesting and easy to read the content. His main focus is on cryptocurrency price analysis and industry news coverage. Lets follow him on Twitter at @jjisige

Follow John @