Bitcoin Price Analysis: Bull Trap? Will $7,800 Support Give In? Bybit Margin Trading

Bitcoin Recovers Double Value than Oil, S&P 500, Bonds and Other Asset Classes

Bitcoin Price Analysis: Bull Trap? Will $7,800 Support Give In? Bybit Margin Trading

  • Bitcoin slides under $8,000 changing the focus from $8,400 to $7,800 support.
  • Technical indicators suggest that the bearish momentum is here to last.

Bitcoin recent broke out a descending channel after embracing the support at $7,800. The recovery from the support not only reclaim the position above $78,000 but also pushed for gains above $8,300. A weekly high was formed at $8,355; an occurrence that left a gap that continues to be explored by the bears.

Bitcoin perpetual futures contract on Bybit suffered another drop on Wednesday at the beginning of the European session on Wednesday. There was a struggle to keep the price above $8,000 but Bitcoin bears tightened their grip pushing the crypto beneath $8,000. The losses clearly show the breakout from the channel was a false signal that guided the bulls in a trap.

BTC/USD 4-hour chart

BTC/USD price chart
BTC/USD price chart by Tradingview, Bybit

At the time of writing, Bitcoin price is flirting with the 23.6% Fibonacci retracement level taken between the last swing high of $8,809 to a swing low of $7,695. An intraday has been formed at $7,937, however, support areas at $7,900 and $7,800 remain in grave danger. For instance, the Moving Average Convergence Divergence (MACD) is back under the mean line (0.00). The visible negative divergence puts emphasis on the prevailing bearish momentum.

Looking at the four-hour chart, BTC/USD is trading below the Moving Averages (MAs). With the gap between the 50 MA and the 200 MA decreasing, we can tell that buying pressure is somehow present.

Bybit Bitcoin contract is trading at $97,966.50 and highlights a mark price of $7,966.31. The prevailing index price stands at $7,966.16. The futures contract has a 24-hour trading volume of 611,300,132 traded contracts and features an open interest of 138,725,574.

Trade Bitcoin on Bybit ->

Key Technical Levels

Spot rate: $7,973

Relative change: -49.21

Percentage change: -0.63%

Open: $8,023

High: $7,924

Trend: Bearish

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Bitcoin Price Analysis: Bull Trap? Will $7,800 Support Give In? Bybit Margin Trading
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Bitcoin Price Analysis: Bull Trap? Will $7,800 Support Give In? Bybit Margin Trading
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Bitcoin slides under $8,000 changing the focus from $8,400 to $7,800 support. Technical indicators suggest that the bearish momentum is here to last.
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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 281 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 @