- Bitcoin continues to explore the depth of the rabbit hole within a descending channel.
- Bitcoin downtrend momentum has the potential to dip into the $7,000’s in a bid to find a bottom.
Bitcoin price is narrowing down towards the vital $8,000 level. The correction within a descending channel suggests that the rabbit hole exploration mission is just getting started. In this case, investors must be ready for a potential slide below $7,000 in the coming weeks. It is apparent that Bitcoin is searching for credible support (bottom) in a bid to reward investors with an early holiday gift.
Meanwhile, Bitcoin is trading at $8,148 and barely holding the position at the Bollinger Band one-day lower curve. The prevailing momentum is, as a result, the bearish wave on Monday during the American session.
XBT/USD daily chart
From a technical perspective, BitMEX Bitcoin futures contract is in for a rough ride in the coming sessions. First, the Relative Strength Index is breaking down towards the oversold. In other words, Bitcoin is not oversold in spite of the recent rejection from $8,800 and Monday’s testing of 8,000 critical levels.
Although, analysts thought that Bitcoin had averted the effects of a death cross, in retrospect, its impact is still being felt. Also, the expanding gap between the 200-day MA and the 50-day MA suggests that the trend is largely in the hands of the bears.
XBT/USD contract details on BitMEX show an index price of $8,142. It has attracted a 24-hour trading volume of $2.3 billion. At the same time, it features an open interest of 4809 million.
Bitcoin Key Technical Levels
RSI: Shows strong bearish grip
Resistance: $8,250 and $8,400