Bitcoin Just Broke $8K: Here Are Important Supports Traders Must Watch

In yesterday’s weekly forecast, we discussed a breakdown pattern in and the chances of it hitting the $8,400 level. BTC price not only tested the $8,400 level, but it dived sharply below the $8,200 support.

The daily chart suggests that the price many , starting with $9,000 and $8,800. The first major support was near the $8,750 level and a major bullish trend line.

The next key support was near the 50% Fib retracement level of the main upward move from the $6,442 low to $10,560 high. More importantly, bitcoin price traded below the $8,200 support area (the previous breakout zone) and the 100-day simple moving average.

The price is now trading well below the 61.8% Fib retracement level of the main upward move from the $6,442 low to $10,560 high. These are strong bearish signs, suggesting chances of more losses below the $7,800 level.

An immediate support is near the $7,500 level (a multi-touch zone), where the bulls are likely to take a stand. If they fail to defend $7,500 and $7,400, the next stop could be $6,500 in the coming days.

What are the Chances of a Recovery?

The current price action suggests bitcoin is under a lot of selling pressure below $8,200 and $8,000. However, the $7,500 support area could be a savior.

If the price finds a strong buying interest near the $7,500 area, it could start a decent recovery. On the upside, an initial resistance is near the $8,280 level. The main resistance area is near $8,400 and the 100-day SMA, above which the bulls are likely to aim a test of the $9,000 level.

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