- Bitcoin stares into a possible breakdown to $7,000.
- Bitcoin bulls must defend $8,000 support and push for correction above $8,400.
Bitcoin price is inching closer to a breakdown amid the development of a rising wedge pattern. After the price found support from the overwhelming declines experienced since the highest in June around $13,800, Bitcoin bulls pulled towards $9,000. However, the momentum hit a snag at $8,800. The aftermath of the rejection is the ongoing bearish action likely to break the critical $8,000.
XBT/USD daily chart
The price is dancing at $8,161.5 after the break under the falling wedge pattern. Limited action downwards is expected in the current and coming sessions due to the low volume and low volatility. Besides as long as the Relative Strength Index (RSI) stays below 50 (average), the sellers’ grip will prevail. The RSI’s sideways movement means that Bitcoin’s price will continue ranging between $8,100 – $8,200.
The Moving Average Convergence Divergence (MACD) shows that bullish action is still present. The slightly positive divergence also shows that Bitcoin has enough strength to defend the short-term support at $8,100. The biggest and most important task is to keep Bitcoin above $8,000 because if losses extend towards $7,700, Bitcoin could diver towards $7,000.
XBT/USD 1-hour chart
The short-term one-hour chart shows Bitcoin having broken below short-term ascending trendline support. $8,200 is the immediate support while correction above the 100 Moving Average (MA) is likely to push the price above $8,400. The current trend is inclined to making losses despite a gradual upward slope with RSI.
XBT/USD Key Technical Levels
Spot rate: $8162
Relative change: +3
Percentage change: +0.03% on the day