- Bitcoin defends $8,200 support but upside capped under $8,400.
- The Improving technical picture and a formed double pattern could pull Bitcoin above $8,800.
Bitcoin is heading into the last day of week’s trading without much action. However, according to a new report by Forbes Digital Assets says that Friday’s are the most volatile days for Bitcoin. The report also found Monday’s to be slow days for the largest cryptocurrency. The volatility is linked to the expiry of both BitMEX and CME contracts every last Friday of the month.
BTC/USD 4-hour chart
Meanwhile, Bitcoin price is trading at $8,232 having failed to sustain the break above two key indicators. The first being the 23.6% Fib retracement level taken between the last swing high of $10,360 to a swing low of $7,706.91. The second failed breakout was above the trendline resistance in the four-hour range.
The prevailing momentum is strongly bearish. However, the immediate support is offered by the 50 simple moving average (SMA) currently holding ground slightly above $8,200. In the event declines press down on the short-term support at 8,200, buyers can expect to find refuge at $8,000 and the Fibonacci swing low ($7,706).
The technical picture as displayed by various indicators signifies that the bulls still have enough energy to defend the key support areas. Looking at the moving average convergence divergence (MACD), recovery from the previous dip to -450 has stalled marginally above 0.000 (mean line). However, visible divergence signals a stronger bullish grip. The gap between the moving averages appears to be reducing.
As long as the technical picture continues to improve, coupled with the formed double bottom pattern, Bitcoin has a higher potential of breaking out in the coming sessions; a possible target to the upside is $8,800.
Bitcoin Key Technical Levels
Spot rate: $8,219
Relative change: -151
Percentage change: -1.92% on the day.
Trend: Short-term bullish.