- Bitcoin explores the depth of the rabbit hole within a descending channel.
- The support at $7,200 must be reclaimed for Bitcoin to open the path heading to $7,500.
Bitcoin once again forced to deal with losses after opening the trading on Thursday at $7,202.85 and hit an intraday high of $7,294.85. However, because of the diminishing buying power, BTC dropped to $7,076.67 (intraday low). The price has adjusted to $7,182 (current market value).
The losses seem to be following a downtrend within a descending channel. The support at $7,200 caved in, paving the way for Bitcoin to explore levels leading to $7,000. The support in region around $7,100 is essential and will contribute to the mission of defending the $7,000 level.
The Relative Strength Index is pointing north after come in close contact with the oversold region. The indicator needs to maintain the trend upwards to encourage more buying entries, which will most likely reclaim $7,200 and push towards $7,500.
The gap between the 50 SMA and the 100 SMA on the 1-hour chart suggest that selling activity is still present and must be countered with higher bullish pressure.