- Bitcoin bulls have no choice but to defend $8,000 support for dear life.
- Correction towards $9,000 will be an uphill task unless Bitcoin finds a catalyst.
Bitcoin bears have been increasing the pressure on support areas since the drop in value from $8,800 last week. Movement upwards is acutely limited with bulls deciding to remain out of the picture. Bitcoin is trading at $8,167 after failing to hold above $8,300 on Tuesday.
As discussed in the price analysis earlier today, Bitcoin is likely to refresh the lows towards $7,700 (recent low) and even breakdown to $7,000 is the price reacts to the formed flag pattern.
The confluence detector shows that there is a high concentration of resistance areas compare to the almost non-existent support zone. The most prominent resistance is seen at $8,295 and is home to Simple Moving Average 200 15-minutes, SMA five one-day, SMA 50 one-hour, and the Fibonacci 61.8% daily. Further up a cluster of medium-strong resistance levels populates the region between $8,295 and $9,060.
On the downside, the only strong support is $7,786 highlighted using the pivot point one week support one and the previous week low. In the event declines push harder towards $7,000, weak support at $7,276 will try to cushion the drop.
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