Bitcoin price analysis: BTC/USD shutters $8,000 support, the focus shifts to $7,800

• The falling wedge pattern bullish signal fails to materialize as Bitcoin slides under $8,000.
• The RSI in the oversold suggests that a reversal is in the offing.
• Bitcoin bulls must sustain the price above $7,800 to avoid further breakdown.

Bitcoin is leading the market in fresh declines during the European session. The largest cryptocurrency in the world has slipped under $8,000 and seeking support above $7,000. It is trading at $7,930 following a 2% loss on the day.

The falling wedge pattern I have explored as a bullish indicator severally failed to yield. Instead, it’s support has been shuttered giving way for Bitcoin to explore the levels under $8,000. The price is also moving further below the 50 SMA and the 200 SMA on the 4-hour chart. Moreover, the increasing gap between the moving averages suggests that selling pressure is growing.

However, a reflex bullish action is likely especially with the cryptocurrency live rates showing a short-term bullish trend. With the RSI being in the oversold, a reversal could in the offing. Glancing lower, $7,800 is the first support. Buyers have no choice but to defend this zone dear life as a breakdown below it could force Bitcoin toward $7,200.

BTC/USD 4-hour chart