- Bitcoin defends $8,000 support in a bid to forge a reversal towards $9,000.
- The chances of staying above $8,000 support level remain thin as the technical picture remains negative.
Bitcoin has been trading a lower high pattern since the breakout in October. At the time, Bitcoin surged above $10,000. Moreover, the trend did not stop there as Bitcoin extended the leg above $10,500. The downside momentum since October 26 has been unstoppable with several support areas being shuttered including $9,500, $9,000 and $8,400. The recent move towards $8,000 has investors in the market worried that a further drop back to $7,300 possible.
BTC/USD 2-hour chart
Meanwhile, Bitcoin is teetering at $8,089 at the time of writing. Holding as support is the main ascending trendline. Bitcoin bulls must ensure that the price stays above $8,000 to avoid a possible dive towards the next support target at $7,800.
From a technical point of view, the chances of staying above $8,000 remain to be slim. The Relative Strength Index (RSI) has recovered above 30. However, the lethargic movement upwards suggests that selling pressure is still very present in the market. At the same time, it is only when the RSI breaks the lower high pattern that Bitcoin can sustain a significant recovery.
Consequently, we can see the gap between the Moving Averages widening in the 4-hour hour range. If the trend emphasizes on the growing bearish strength which further puts pressure on the key $8,000 support. In addition to that, the 50 MA at $8,318 and the 100 MA at $8,775 are in line to prevent upward correction.
Bitcoin Key Technical Levels
Spot rate: $8,080
Relative change: -46
Percentile change: -0.61
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Source: Coin Gape