Bitcoin Will Likely Head Toward $7,250 If The Market Closes Beneath THIS Trading Level

• Bitcoin dropped by a further 2.5% over the past 24 hours of trading as the coin falls into $7,870.
• The cryptocurrency is now down by a total of 20% over the past 30-days of trading.

Bitcoin saw a 2.5% price decrease today as it trades at $7,871. The bulls are trying to recover from the drastic weekend performance in which Bitcoin rolled over from $9,200 and plummetted as low as $7,630. However, they are struggling to even close any candle above $8,000.

Nevertheless, the bulls are still battling, however, it does look like Bitcoin is preparing for another leg lower. It still remains strongly supported by the downside 1.414 Fibonacci Extension level at $7,750 and a break beneath this would certainly signal that Bitcoin is likely to head toward $7,250.

Bitcoin Price Analysis

BTC/USD – Daily CHART – SHORT TERM

Market Overview

Analyzing the daily chart above, we can see that Bitcoin managed to find support at the .786 Fibonacci Retracement level priced at $7,630 on Monday. It bounced higher from here and has not yet returned to this level.

However, Bitcoin is still struggling to close any candle above the $8,000 level which is a strong sign that we might be heading beneath $7,500 over the next few days.

Short term prediction: BEARISH

Bitcoin remains bearish at this moment in time and would need to climb back above $8,500 to turn neutral.

If the sellers do push beneath the current $7,750 support (downside 1.414 Fib Extension) the first level of lower support is found at $7,630 which is provided by the .786 Fib Retreacemnet). Beneath this, additional support is located at $7,500, $7,417 (downside 1.618 Fib Extension), and $7,265 (.886 Fib Retracement level).

On the other hand, resistance is located at $8,000, $8,250, $8,500, and $8,672.

Key Levels

Support:$7,750, $7,630, $7,500, $7,417, $7,265, $7,100, $7,000.

Resistance: $8,000, $8,250, $8,461, $8,672, $8,979, $9,000, $9,100, $9,270, $9,506, $9,740, $9,975, $9,000, $9,270, $9,500.