- Bitcoin reruns into the bearish phase as the downtrend targets $8,000.
- Ascending channel support and $8,300 are likely to hold Bitcoin declines in the European session.
Bitcoin has continued with a downtrend since the week began. Losses after losses have been made where the bearish pressure has forced its way thought several key support areas including $8,800, $8,500 and $8,450. At the time of writing, Bitcoin is teetering at $8,304 after extending the breakdown below Thursday’s support around $8,450.
Looking back at the trend last week, Bitcoin surged from levels around $7,700 to highs close to $9,200. The massive correction revived the hope with most analysts suggesting that the trend will continue northwards ahead of the May 2020 halving event. It is reported that investors are positioning themselves for a groundbreaking recovery following the halving.
BTC/USD 4-hour chart
Meanwhile, if Bitcoin price extends the losses below the ascending channel support currently being tested, the next rendezvous could $8,000. Bitcoin’s immediate upside is capped by the 50 MA (contributing to the resistance at $8,400). The bearish trend signals that upward movement will not be very forthcoming on Friday unless Bitcoin meets a catalyst to boost it in the direction of $9,000.
From a more technical perspective, the bears have control. The Relative Strength Index (RSI) has dived into the oversold region (below 30). Moreover, the Elliot Wave Oscillator has started the second day of continued bearish sessions.
On the brighter side, the RSI’s oversold conditions could soon signal a reversal especially if Bitcoin finds support (preferably at $8,300 or the channel support). A break above $8,400 will help to avert a possible plunge to $8,000 and $7,700, respectively.
Bitcoin Key Levels
Spot rate: $8,311
Relative change: -74
Percentage change: -0.90%
Key Support: $8,300 and $8,000
Key Resistance: $8,400 and $8,800
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