The recent downtrend was as a result of the bulls’ failure to breach the $10,000 overhead resistance. The bulls made two attempts at the resistance before the resumption of the downtrend. Analysts are of the view that if price retraces above $9,400 and holds, a rebound is possible above $10,000 resistance.
After the two unsuccessful attempts, the market reached $9,600 low as the Bitcoin network approaches the long-awaited Halving event. The bulls made partial correction upward which resulted in the final downward move. The support levels of $9,400 and $9,200 were breached as the price dropped to $8,101 low. The bulls made the correction above $8,500 and resumed consolidation.
Nonetheless, buyers continue to retest the $8,800 resistance level but face more selling pressure. It is unlikely for the bulls to achieve any upward move as buyers may face selling pressure at the $8,900 and $9,100 resistances.
On the downside, Bitcoin is trading at $8,953 at the time of writing. The king coin may decline to the support above $8,000. Perhaps, the bulls may defend the support level. Bitcoin will resume its uptrend if the $8,000 support holds.
Eventually, if the bears break below $8,000 support, the downtrend will resume. A change in trend will ensue. Certainly, the market will decline to the lows of $7,350 and $7,000, if the $8,000 support is breached. Bitcoin has fallen to level 46 of the daily Relative Strength Index period 14. The coin is out of the oversold region.
Bitcoin may rebound if price retraces to $8,000 support
On the daily chart, BTC tested the $10,000 resistance as the price broke below the resistance line. The market drops sharply to $8,000 low and above the support line.
With less than 5 hours before the big event, the uptrend will continue if the price fluctuates between the support line and resistance line. Presently, the 12-day EMA has been broken by price. Bitcoin will be in the bearish trend zone if the EMAs are broken.
Nonetheless, the downtrend will resume, if the support line is broken and price closed below it. Meanwhile, BTC is below 80% range of the daily stochastic indicating that the coin is in a bearish momentum. However, the price action is showing bullish signals.