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  • Bitcoin’s failure to clear $8,800 resistance demoralized the bulls opening the Pandora box again.
  • The break below six-month trendline support means that the downtrend will not correct easily.
  • Bitcoin continues to explore levels towards $8,000 ignoring the visible oversold conditions.

Bitcoin retreat after testing $8,800 hurdle on Wednesday appears to have demoralized the investors and the bulls on the market. This movement has left the next key support areas vulnerable to declines. For this reason, an analyst on Twitter, Trading Room emphasizes that if recovery does not come into play soon, investors should prepare for another rollercoaster ride to levels within $7,200 – $6,900.

In the chart analysis, Trading Room says that the 200 Daily MA must be reclaimed in order to avert the breakdown.

Bitcoin price short-term technical picture

For starters, Bitcoin is trading below a strong but broken six-month ascending trendline. The trendline has stayed in position since April this year. Besides, the price is below the simple moving averages. Whereby the 50 SMA on the four-hour chart will hamper upward movement at $9,743 while the 100 SMA will limit movement at $10,000.

The relative strength index is stuck in the oversold as Bitcoin continues to ignore the conditions. Similarly, the moving average convergence divergence deep dive under the zero line amplifies the influence the bears have on BTC. Its slightly negative divergence signals a market that is likely to grapple with the sellers’ grip a while longer.

BTC/USD 240′ chart