- Bitcoin recovers from a quick dive to $7,750 support.
- The short-term technical picture is slightly positive but Bitcoin bulls need a catalyst to push the price upwards.
Bitcoin is barely holding above $8,000 after a shallow recovery from a dip that tested $7,750 support on Thursday. The bearish price action has prevailed on the market since the flash drop on Tuesday. The fight to stay above the support levels at $8250 and $8,000 bore no fruits as selling activities intensified across the crypto space.
The simple moving averages are still above the price whereby the 50 SMA on the hourly chart is holding ground at $8,304 and the 100 SMA currently stands at $8,950. The gap between the two SMAs continues to widen as an indication of a stronger sellers’ grip.
Other technical indicators like the moving average convergence divergence and the relative strength index suggest that the fight within the buyers is not over. However, they will need a catalyst to strengthen their efforts if a significant correction is to occur towards $9,000.
Meanwhile, Bitcoin is trading at $8,016 amid consolidation in a new descending channel. Both sides of the channel have been tested severally, which means BTC could remain in the confines of the channel a while longer.
BTC/USD hourly chart
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