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.