- Bitcoin defends $7,200 support in a bid to prevent a possible drop back to $6,500.
- The resistance at $7,200 must come down for Bitcoin to commence the journey targeting $8,000.
Bitcoin is displaying strong bearish tendencies despite being a week from Christmas. It is becoming apparent that Santa lost his way to the crypto space. Last December, Bitcoin hit ‘rock bottom’ around $3,146 and culminating in gains that saw it hit highs around $13,800 in June 2019. However, the losses from the highs in June have become unstoppable. Initially, Bitcoin consolidated above $10,000, but increasing bear pressure pushed it into towards $9,000 and later $8,000.
At the time of writing, Bitcoin bulls are working around the clock to sustain the price above $7,000. BTC/USD is doddering at $7,080, while the momentum has a bearish inclination. The buyers tried and failed to pull it above $7,200 over the weekend, but the sellers remained adamant about giving up their position.
XB/USD 4-hour chart
For now, the only hope the bulls have of seeing $8,000 again before the year ends id the impeding symmetrical triangle breakout. The momentum likely to come from the pattern breakout could have the energy to clear the resistances at $7,400, $7,700, as well as $8,000.
From a technical perspective, the current drab sideways trading momentum is likely to continue. The RSI is moving horizontally at 40 after recovering from levels close to 30. As long as Bitcoin stays above $7,000, they will eventually push past $7,200. Also, trading above both the 50 EMA and the 100 EMA on the 4-hour chart is likely to encourage more buying entries.
Bitcoin Key Technical Levels
BitMEX index price: $7,080
Volume: $1.2 billion
Open interest: $8,000
RSI: Bearish bias