- Bitcoin bulls defend $8,500 – $8,500 forming a key support range.
- Only after finding a bottom will Bitcoin reverse the trend significantly towards $10,000.
Bitcoin bull Tim draper has once again come out with a not so preservative prediction for BTC. The billionaire believes that Bitcoin has the potential to trade above $250,000 in the period beyond 2022 going to 2023.
Meanwhile, Bitcoin is lethargic above $8,700. Advances towards $8,800 have not yielded any credible results. Instead, BTC is nurturing as the bearish trend towards the key support at $8,700.
The 100 Moving Average on the one-hour chart is limiting gains around $8,800. The descending trendline resistance continues to make sure that Bitcoin forms a lower high pattern from the previous false breakout above $10,500.
BTC/USD 1-hour chart
Bitcoin is also staring into a bottomless pit especially if the forming rising wedge pattern gives in the ongoing retracement in price. Reaction to such a pattern signals a reversal amid an upward slopping trend.
If Bitcoin drops below the key support at $8,700, the sellers will be encouraged to short Bitcoin more hence forcing the price towards $8,500. It is important to note that Bitcoin is yet to find a credible bottom that is likely to increase demand and force a reversal above $9,000 and towards $10,000.
In the short term, the technical picture is strongly bearish especially with the Relative Strength Index inching towards 30 and the oversold levels. The volume is also expanding to show that the selling entries are rowing as well.
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Bitcoin Key Technical Levels (Bybit)
Last traded price: $8,770
Mark Price: $8,761
Index price: $8,763 Volume: $675 million
Interest: $163 million
RSI: Bearish signals