- Bitcoin dives under $8,000 and refreshes the new support at $7,750.
- The slide under the 200-day MA did not have far-reaching effects as had been anticipated.
The scenario we painted using daily XBT/USD has changed slightly following Bitcoin’s price slide under $8,000. The bears extended the action to a new support level at $7,750 (on Coinbase). The declines slipped below the vital 200-day moving average (MA). However, the impact of breaking the MA was not far-reaching as I had anticipated.
XBT/USD daily chart
At the time of press, Bitcoin is trading at $8,000 amidst a building bearish trend. The moving average convergence divergence (MACD) in the daily range is stuck in December 2018 lows around -482. The MACD was at this same levels in December when the price hit yearly lows around $3,150. Interestingly, Bitcoin made a correction for the best whose fruits propelled the price to highs around $13,800 in June this year.
The descending channel we explored yesterday was pierced but XBT/USD is still within its confines. As long as the price is able to sustain above the channel support, we could see a bounce towards $9,000. This will also encourage Bitcoin longs traders on BitMEX and other margin trading platforms to bet on a higher Bitcoin price. With fresh demand for Bitcoin, a resurface above $10,000 could be possible.
Taking another analyst’s perspective of the short-term technical picture, Bitcoin is likely to push the downside as low as $6,500. However, AngryBurds reckons that there will be a swift recovery to $13,600 towards the end of the second week of October.
XBT/USD Key Technical Indicators
Spot rate: $8,002
Relative change: -59
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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