- Bitcoin defends $7,800 averting the danger of a possible breakdown to $7,400.
- In the long-term, Bitcoin remains bullish with a possible falling wedge pattern breakout.
Bitcoin has for the second time this month defended the at $7,800. However, this is not a cause for celebration as the majority of analysts believe that this year’s bottom will be around $6,000. On the contrary, it is good to celebrate small victories that eventually win the war.
The brief reversal seen yesterday saw Bitcoin reclaim its position above $8,000. Unfortunately, movement above $8,100 remained largely contained. This hindered upward movement leaving the bulls not only demoralized but also vulnerable to the jabs thrown by the sellers. Eventually, the support at $8,000 caved in allowing a short-lived dive towards $7,800.
BTC/USD daily chart
On the brighter side, $7,800 a previous support (last week) had high congestion of buyers who immediately pulled Bitcoin above $7,900. This move defended the flag pattern support at $7,800. Twice Bitcoin bulls have attempted a breakout above $8,800 (flag resistance limit) but failed miserably. If the correction made it under $7,800, the chances of Bitcoin plunging to $7,400 would be great.
Bitcoin Long-term Outlook for Long Traders
As for Bitcoin’s long traders, the current movement is unfavorable. However, the forming falling wedge pattern dictates that a significant recovery is underway. A breakout above the range resistance will place Bitcoin in a trajectory towards $9,000 and $10,000 levels respectively.
Consequently, Bitcoin is heading into a death cross pattern. A pattern that occurs when the 50 MA crosses below the 100-day MA. This pattern is interpreted as bearish but history has seen Bitcoin bounce incredibly leaving the sellers trapped in what they thought was a downtrend.
Bybit Bitcoin contract last traded price currently stands at $7,958. They have a marked price of $7,953 at the time of writing while the index price stands at $7,953. The exchange has recorded 535,681,752 contracts in the last 24-hours.
Bitcoin Technical Levels
Last price: $7,954
Support: $7,800, $7,700 and $7,400.
Resistance $8,000, $8,200, $8,400 and $8,800.
Trend: Bearish (short-term)
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