Bitcoin makes a quick return to $7,800 as the crypto market endures minor bloodshed.
In the long-term Bitcoin looks extremely bullish especially the formation of a falling wedge pattern.
Bitcoin has resumed the downtrend after a brief stays above $8,000. The declines come after correction towards $8,100 became unsustainable. Most traders and analysts remain strongly bearish with some pointing to $6,000 as the next rendezvous. The downside remains acutely vulnerable to declines as Bitcoin refresh the one week support at $7,800.
Meanwhile, XBT/USD is dancing with $7,901 following a shallow recovery from the intraday low. If the short-lived correction tom$7,800 was to create fresh demand due to demoralization experienced by the buyers above $8,000, then we are likely to see action stirred up towards $9,000 in the coming weekend session.
XBT/USD four-hour chart
XBT/USD price chart by Tradingview
Looking at the chart from a technical point of view, Bitcoin’s return above $8,000 will not be an easy task. This is because the broken long-term trendline support has turned into a resistance zone with high congestion of sellers.
The Relative Strength Index ( RSI ) is still trending towards the oversold (levels under 30). The sharp drop signifies the strong bearish grip the sellers have on the price. Similarly, the Moving Average Convergence Divergence ( MACD ) trend in the negative zone indicates that bearish pressure is here to stay, at least in the short-term. The bearish close is evidence that selling activities are at their peak on Friday.
From a long-term perspective, Bitcoin is likely to close the year with a massive rally. The formation of a falling wedge pattern suggests that a breakout is in the pipeline.
Spot rate: $7,914
Relative change: -160
Support: $7,800 and $7,800
Resistance: $8,000 and $8,100
The post XBT/USD Analysis: What Next for Bitcoin After Rejection From The $8,000’s? – BitMEX Margin Trading appeared first on Coingape .