- If Bitcoin breaks $8,000 key level; expect $7,200 to be the rendezvous.
- Bitcoin breaks below the falling wedge pattern support further complicating the chances of recovery.
Bitcoin price is still dealing with the selling pressure that befell it on Monday. The price approached $8,000 after $8,400 failed to hold at a support. Moreover, corrections to the north became untenable leaving a gab wide open to be explored by the bulls.
The falling wedge pattern we have been discussing over the last week broke down leaving Bitcoin to hang in the balance. In spite of the support pattern being shuttered, Bitcoin is managed to stay above $8,000.
BTC/USD 4-hour chart
At the time of writing, a minor recovery can be spotted with Bitcoin holding above the 23.6% Fib resistance level taken between the last swing high of $10,522 to a swing low of $7,281. It is apparent that Bitcoin bulls must maintain the price above $8,000 to avoid the devastating grip that would see the price plunge to the possible bounce/buy zone at $7,200.
At the moment, the Relative Strength Index (RSI) is in the oversold region. A visible minor recover targeting shows that buying activity is gaining traction. However, to be on the safe side, the RSI must break the high pattern it has been forced to formed since October 26.
On the upside, defending $8,000 support is key for reversal if the buyers want to avoid the $7,000 range altogether. This will also bank on the ability for Bitcoin to recover above $8,400 and $8,800 respectively. Besides, it is clear that the journey to $9,000 will not be a smooth ride.
Bitcoin Key Technical Levels
Spot rate: $8,080
Percentile change: -1%
Relative change: -84
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Source: Coin Gape