- Bitcoin makes a quick return to $7,800 as the crypto market endures minor bloodshed.
- In the long-term Bitcoin looks extremely bullish especially the formation of a falling wedge pattern.
Bitcoin has resumed the downtrend after a brief stays above $8,000. The declines come after correction towards $8,100 became unsustainable. Most traders and analysts remain strongly bearish with some pointing to $6,000 as the next rendezvous. The downside remains acutely vulnerable to declines as Bitcoin refresh the one week support at $7,800.
Meanwhile, XBT/USD is dancing with $7,901 following a shallow recovery from the intraday low. If the short-lived correction tom$7,800 was to create fresh demand due to demoralization experienced by the buyers above $8,000, then we are likely to see action stirred up towards $9,000 in the coming weekend session.
XBT/USD four-hour chart
Looking at the chart from a technical point of view, Bitcoin’s return above $8,000 will not be an easy task. This is because the broken long-term trendline support has turned into a resistance zone with high congestion of sellers.
The Relative Strength Index (RSI) is still trending towards the oversold (levels under 30). The sharp drop signifies the strong bearish grip the sellers have on the price. Similarly, the Moving Average Convergence Divergence (MACD) trend in the negative zone indicates that bearish pressure is here to stay, at least in the short-term. The bearish close is evidence that selling activities are at their peak on Friday.
From a long-term perspective, Bitcoin is likely to close the year with a massive rally. The formation of a falling wedge pattern suggests that a breakout is in the pipeline.
Trending Stories
Technical Levels
Spot rate: $7,914
Relative change: -160
Trend: Bearish
Volatility: Low
Support: $7,800 and $7,800
Resistance: $8,000 and $8,100
- Top Meme Tokens Slow To Recover From Recent Crash, Here’s Why
- Just In: Amid Crash, Market Expansion Could Boost This Stablecoin
- This Stablecoin’s Market Cap Skyrockets Amid FUD In Tether, UST
- Will DeFi Giant Lido Support The Terra Reboot?
- Sandbox (SAND) Jumps 16% Ahead Of Listing On This Top Exchange
- Is Do Kwon’s Terra Recovery Plan Part Of A “Kill Switch” Protocol?
- This Top-50 Crypto Jumped 28% This Week Despite A Market Crash
- Goldman Sachs: Crypto Drawdown Will Have Little Impact on U.S. Economy
- Just-In: Ethereum Merge Most Likely In August, Says Vitalik Buterin
- Beware, Bitcoin Jumping Back Above $30,000 Could Be A Dead Cat Bounce, Here’s why
- Bitcoin Price Analysis: BTC Price Strikes $30000; Breakout Or Fakeout?
- TRX Price Analysis – Another Bullish Attempt For $0.075 Breakout
- KuCoin Price Analysis: Low Volume Rally Hints Pullback Opportunity in KCS
- Polkadot Price Analysis: Bull Trap May Drag DOT Price To $7.3 Mark
- APE Price Analysis: Triangle Breakout Eyes 55% Rise in APE
- Ripple Price Analysis: XRP Price Remains Pressured Below $0.45
- EGLD Price Analysis: Decreasing Volume Hints EGLD to Reverse from $75
- Cardano Price Analysis: ADA Price Prepares For 22% Jump; Are You Holding?
- Bitcoin Price Analysis: BTC Price Holds Above $30,000; Opportunity To Buy?
- Ethereum Price Analysis: ETH Price Erases Recovery Gains Towards $2,000
