Bitcoin price analysis shows that BTC has broken bearish through the psychological $8,000 level, with a -1.19% loss against the US dollar over the last 24 hours. Is this just a temporary correction, or could this be the start of a reversing trend? Let’s take a look.
Bitcoin Price Technical Analysis: Market Overview
Bitcoin price 00 appeared to be heading towards new heights this morning, after hitting a new 10-month high at $8,388. The celebrations, however, quickly turned to panic as a series of heavy sell-offs unraveled the asset’s price back down to $7,700.
BTC is now heading towards a bearish double top after failing to close above its previous high on May 11, at around $8,327. This will be a major test of faith for BTC buyers, as a fall below $7,700 could spell doom for the asset’s short to mid-term prospects.
Right now, bullish traders are desperately trying to prop up bitcoin’s declining value, and have so far managed to find refuge along with strong uptrend support.
If this level holds, then we could potentially see buyers launch an upside recovery back towards the $8,300 level. If it fails however, then it is more than likely that confidence will depart from the asset and the uptrend will reverse.
BTC/USD 1-Day Chart
On the 1D BTC/USD chart, we can see that the RSI has started to arc back towards the channel as the uptrend weakens. Buying volume on the MACD histogram is also dropping as selling pressure increases.
At the moment, the 5 SMA (blue line) appears to be providing good overlapping support for the price action as bulls defend the critical $7,800 level.
BTC/USD 4-Hour Chart
On the 4H BTC/USD we can see a worrying contradiction between the price action and the RSI trend.