• Bitcoin hits the pause button before testing $9,000; correction is under towards $8,400.
• Bitcoin upward correction is likely to hit more hurdles especially with the formation of the rising wedge pattern.

The cryptocurrency market is painted red every as corrections from the recent high catch momentum. Bitcoin has already suffered a 2% loss on Thursday as the Asian session concludes. The largest cryptocurrency in the world hit the pause button at $8,915, halting the recent surge.

Prior to the massive correction, Bitcoin’s upside was capped at $8,200. The resistance and selling activity at $8,400 was an uphill task as well. However, once broken, hell broke loose on the bears as the price soared to new 2020 highs.

It is unfortunate that $9,000 was not tested during this rise. Besides, the ongoing correction appears to be targeting $8,000. Bitcoin is teetering at $8,625, at the time of writing. The Relative Strength Index (RSI) downward slope hints that losses have only begun and could extend to the nearby support at $8,400.

XBT/USD 4-hour chart

The negative technical picture is being emphasized by then Moving Average Convergence Divergence (MACD), currently featuring a minor bearish cross. Similarly, the upward movement has stalled and a downward slopping correction is taking over.

Both the long term and short term technical pictures for Bitcoin seem bearish. The formation of a rising wedge pattern signals a future reversal that could test $8,000 in a bid to push Bitcoin into the $7,000 range.

Bitcoin Key Levels

BitMEX index price: $8,621

24-hour volume: $3.3 billion

Open interest: $852 million

Percentage change: -2.23%

Relative change: -196

RSI: Downward slopping hints bearish outlook in the near term.