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Bitcoin market update: BTC/USD pullback sends jitters across the board

  • Bitcoin return to $8,000 confirmed an uptrend that most experts predicted hitting $10,000 in the near-term.
  • BTC/USD prevailing bearish trend could test $7,000 in search of  support.

Bitcoin recent return to $8,000 had most people believing that it was a confirmation an expected surge. Experts like Tom Lee outlined multiple reasons why Bitcoin had entered into a bullish phase and that it had even found a bottom. On the contrary to general expectations, Bitcoin started the correction from $8,000 yesterday plunging massively towards $7,500. At present, traders are alert looking for support levels but they are scattered.

In the last few days, Bitcoin was grinding sideways marginally below $8,000. The consolidation came after the rollercoaster ride initially to $8,384, back to $6,500 and the reversal to $8,000 again. Although BTC/USD has shown recovery strength in the last few days, the current dump appears to be ominous.

The Asian trading session on Thursday saw Bitcoin plunge 4% to lows around $7,567.28. the intraday chart shows BTC/USD trending lower 0.72% while exchanging hands at $7,563.82. The rising trendline was not able to stop the declines but short-term support seems to be establishing at $7,500. In the event declines continue below this level, the 100 Simple Moving Average (SMA) 4-hour will try to offer support at $7,248.16. $7,000 looks like a credible support area.

Bitcoin price is above the 200 Exponential Moving Average, consoling the buyers that all is not lost. Other indicators like the Relative Strength Index (RSI) and the Moving Average Convergence Divergence are moving lower at 40.7 and -2.81 respectively, in turn, emphasizing that the current bear trend will continue in the coming sessions of the day.

BTC/USD 4-hour chart

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