- BTC/USD recovered over the last weekend and stepped above $8,800.
- The 15-minutes chart shows a building bullish momentum supported by the RSI.
Bitcoin has corrected below last week’s support at $8,000 in the first devastating selloff of June. Following the establishment of the support at $8,000, BTC/USD recovered over the last weekend and stepped above $8,800. A high was formed around $8,835.62 before the bears began trimming the gains on Sunday and Monday.
Initially, the price consolidates between $8,600 and $8,400 for most of the trading on Monday. However, some bearish indicators like the shorter term 50 Simple Moving Average (SMA) crossing below the 100 SMA 15-minutes gave the sellers confidence. Moments before the close of the session on Monday, a bearish wave swept across the that sent Bitcoin in a tailspin dropping below key support levels at $8,200 and $8,000 before finding balance at $7,800.
Bitcoin has since recovered to above $7,900 and is currently trading at $7,957. The formation of a bearish flag pattern means that the price could reverse the current recovery in continuation of the recent plunge. Formidable support in the downfall would be $7,500 but it is likely that $7,000 will be the turning point where fresh demand will be created.
Meanwhile, the chart shows a building bullish momentum supported by the RSI (heading north) and MACD almost crossing into the positive region. Traders should wait for a correction above $8,000 to before increasing their buy positions. Similarly, they should be alert for any reversals below the flag pattern support.
BTC/USD 15-minutes chart
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