- Bulls fight tooth and nail to hold Bitcoin above $8,000.
- The $7,000 range is beckoning even as Bitcoin’s technical levels align in the favor of the sellers.
Bitcoin spent the entire weekend battling to reverse last week’s bearish action. The losses from the resistance at $8,464 had found refuge above the 61.8% retracement level taken between the levels $8,464 and $6,849. The recovery move that followed saw Bitcoin stepped above $8,000. More bullish action tackled the resistance at $8,200. However, sustaining the bullish momentum became extremely hard, giving way for the ongoing retraction.
The most-traded cryptoasset is teetering at $8,091 after the support at $8,100 failed to hold. The momentum is bound to continue towards $8,000 based on the trend displayed by the RSI. The indicator’s recovery fell short of the overbought region reminiscent of the rejection at $8,200. The downward sloping motion signals increasing bearish action. In other words, Bitcoin is likely to break the support $8,000 and return into the $7,000 range.
BTC/USD 4-hour chart
As for traders, Bitcoin shorts are likely to take precedence. Bitcoin has a higher chance of dropping to $7,600 than recovering towards last week’s high around $8,464. However, support is expected at the 50 SMA on the 4-hour chart and the zone at $7,800.
On the flip side, the wide gap between the 50 SMA and the 100 SMA paints a picture where the bulls are battered but have made a choice to die standing. In other words, the buyers are intentional on containing the losses above the $8,000 level; a move that will allow them to focus on higher levels towards $9,000.
XBT/USD Key Levels
BitMEX index price: $8,102
24-hour volume: $1.4 billion
Open interest: $784 million
Percentage change: 0.98%
Relative change: -80
Disclaimer The views, opinions, positions or strategies expressed by the authors and those providing comments are theirs alone, and do not necessarily reflect the views, opinions, positions or strategies of CoinGape. Do your market research before investing in cryptocurrencies. The author or publication does not hold any responsibility for your personal financial loss.