Bitcoin is Still in Medium Term Growth Trend: Here's Why
Bitcoin launched a downside correction from $ 9,191 against the US Dollar from 2020. However, the BTC price is still on an upward trend and can find buyers near $ 8,000 or $ 7,670.
Bitcoin price launched a short-term downside correction below $ 9,000 and $ 8,800.
It is currently traded above $ 8,200 and there are many adverse supports in the negative direction.
The daily chart of the BTC / USD pair (data flow from Kraken) has a decreasing channel or bull flag with resistance near $ 8,500.
The pair will find strong buying interest around $ 8,000 and the 100-day simple moving average.
Bitcoin Price Supported in Declines
After forming a short-term cap near the $ 9,191 level, bitcoin launched a negative correction. BTC price broke the $ 9,000 and $ 8,800 levels to enter the bearish zone.
Bears were able to push the price below the 23.6% Fib retracement level of the last significant increase. It has also closed below the $ 8,500 support level daily.
Still, there are many important supports near the $ 8,200 and $ 8,000 levels downstream. Close to the $ 8,000 level as the main support is close to the 100-day simple moving average.
In addition, the 50% Fib retracement level of the recent major increase from $ 6,836 to $ 9,191 is also near $ 8,000. Therefore, if the price improves further, the declines are supported downstream.
Probability of a Big Drop in BTC?
As mentioned, the $ 8,000 support is a major buying region. If there is a disadvantage break below $ 8,000, the next big boost is close to the $ 7,670 area.
The previous breaking zone was close to $ 7,670 and now corresponds to the 61.8% Fib retracement level of the recent major increase from $ 9,836 to $ 9,191.
Thus, a successful close below $ 7,670 or $ 7,600 daily may adversely affect the current bullish outlook. In this case, the price is likely to revisit the $ 6,500 support area.
Daily MACD - MACD is slowly gaining momentum in the bearish zone.