- Bitcoin price bulls defend $8,000 support as their lives depend on it.
- BTC/USD bulls intimated by the hovering dark cloud as the downside points towards $7,200.
Bitcoin price suffered another crash on Sunday losing more than $800. The largest crypto dropped like a stone penetrating several tentative support areas. Fortunately, the buyer congestion at $8,000 saw the primary support defended and a reversal started. BTC/USD is exchanging hands at $8,068 after failing to break the resistance at $8,200. Losses are likely to continue in the near term especially if the support at $8,000 fails to hold.
In other words, Bitcoin bulls must defend the support at $8,000 like their lives depend on it. It is essentially their lifeline if recovery is going to be their ‘portion’ this week. Technically, the trend remains to the downside. Looking at the Relative Strength Index (RSI), clearly, the bearish pressure is still present. It is for this reason that recovery has lost its mojo at $8,183 leaving $8,200 untested.
BTC/USD daily chart
Moreover, the gap between the moving averages keeps increasing, further emphasizing the presence of the sellers on the market. For now, the path of least resistance is southwards. Sustaining gains above $8,200 has become a hard nut to crack. In the meantime, bulls are likely to contain the losses and nurse the wounds above $8,000.
Unfortunately, a dark cloud continues to hover across the cryptocurrency market amid the Coronavirus fears. If support at $8,000 was to give in, BTC/USD is likely to drop and test lows at $7,200 or even $7,000; a move likely to create fresh demand for BTC and force a recovery towards $9,000.
Bitcoin Key Levels
Spot rate: $8,066
Relative change: 10.26
Percentage change: 0.11%
Trend: Sideways action