Bitcoin technical analysis: BTC/USD slump to $6,500  a temporary setback, falling wedge pattern hints

• Bitcoin reverses the recent downtrend after hitting support at $6,500.
• Short term analysis suggests that Bitcoin has a bullish bias; therefore, defending $7,000 support is essential.

Spot rate: $7,161

Relative change: 35

Percentage change: 0.5%

Trend: Short-term bullish

Volatility: Expanding

Read also:  Bitcoin price analysis: BTC/USD bulls push past $7,000 critical resistance

BTC/USD daily chart

The technical picture for Bitcoin is bearish according to the RSI lethargic recovery within the oversold.

A long term falling wedge pattern suggests that Bitcoin will eventually break the barriers to make a return above $13,800.

BTC/USD 4-hour chart

Bitcoin has a short term bullish bias, especially with the MACD’s bullish cross towards the mean line.

If the bulls defend $7,000 support, recovery towards $8,000 is likely to come easy.

BTC/USD 1-hour

Apart from the 50 SMA support, a short ascending trendline is proving to be a worth anchor.

The supply zone at $7,400 must be broken for Bitcoin to open the gate towards $8,000.