- Bitcoin is poised for declines in the short-term as bears increase their grip.
- BTC/USD is deprived of support areas with $6,770 working as the strongest support level.
Bitcoin price has recovered from the lows posted close to $7,500 to the extent it almost touched $7,900. Although investors expected to see Bitcoin above $8,000, the bulls seem to have been overwhelmed by the recent losses. At press time, BTC/USD is trading at $7,691 below both the 50 Simple Moving Average (SMA) and the 100 SMA. The short-term chart shows a building bearish pressure with the price targeting the short-term support at $7,600.
The confluence detector tool places the first resistance at $7,650 with a confluence of the 38.2% Fib level 1-minute, the previous low 15′ and the previous low 1-hour. The second resistance is seen at $$7,810.38 and is highlighted by the 61.8% Fib level daily, Bollinger Band 15-minutes upper, previous week low and the previous high 4-hour among other indicators. A correction above $8,000 will encounter resistance at $8,50.32, $8,210.28 and at $8,530.20.
Bitcoin is currently deprived of strong support areas. The most significant support is observed at $6,770.64 as the confluence tool. Therefore it is essential for the bulls to push the price above $8,000 in the short-term. If push comes to shove, $7,500 must be defended by all means necessary to avoid further breakdown.
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