- Bitcoin price suppression continued over the weekend as traders bet on another drop under $7,500.
- Technical levels remain strongly negative with the MACD unable to cross above the zero line (0.000).
Many analysts and investors are trying to demystify the recent drop in Bitcoin. Besides, the suppression lasted all weekend long with Bitcoin remaining pivotal at $8,000. The dips continued on Monday during the Asian and the European sessions. XBT/USD dived under last week’s support at $7,750 and formed a weekly low at $7,695.5 (on Coinbase).
XBT/USD two-hour chart
Bitcoin Price New Descending Channel
The two-hour chart of XBT/USD trading pair shows the formation of a new descending channel. The trend in this channel has seen both sides of the channel tested. The current trend suggests that the sellers have the upper hands and Bitcoin is yet to find a bottom. Besides, the increasing volume could push for a breakdown under the channel support with the next target at $7,200.
The sentiments are shared by another analyst on Tradingview, CryptoNTex who explores the trading ideas within an almost similar channel but on an eight-hour timeframe chart. According to the analyst, the descending channel is pointing Bitcoin to levels around $7,500.
“$BTC Looking to this descending channel on the 8H chart as continuation of the dump.. My target of 7.5k retest remains same.. RSI bearish on almost every timeframe with UCTS Sell signals across the board.. For now my short in bitmex is still open from $10.2k #BTC.”
The two-hour chart shows the price trading below the moving averages. The gap between the MA 100 at 8,745 and MA 50 at 9,481 is still widening as a signal of the growing sellers’ grip. Besides, the moving average convergence divergence is stuck under 0.000 (line) despite the correction from levels at -400.
XBT/USD Key Technical Levels
Spot rate: $7,788
Relative change: -259
Percentage change: -3.17%
Trend: Strongly bearish