Bitcoin prices are falling below support levels of $ 8,340 and $ 8,200. The price is approaching the $ 8,000 main support area where bulls can take a stand.
There is a short-term bearish channel with resistance close to $ 8,165 on the BTC / USD pair chart.
If the BTC does not stay above $ 8,000, the next stop may be close to $ 7,650.
Price Analysis
Yesterday, we discussed the chances of a bitcoin breakout at $ 8,200 support. BTC has dropped over the past three sessions and has broken support levels of $ 8,340 and $ 8,320.
In addition, the price did not stay above the main support level of $ 8,200 and settled well below the simple 100 hour moving average. It traded close to $ 8,000 and a new monthly low was formed near $ 8,033.
The price is currently correcting above $ 8,100. It is consolidating near the Fibonacci retracement level of 23.6%.
On the plus side, immediate resistance is close to the $ 8,180 and $ 8,200 levels. In addition, there is a short-term bearish channel with resistance close to $ 8,165 on the BTC / USD pair's hourly chart.
If Bitcoin exceeds channel resistance, it can test resistance levels of $ 8,300 and $ 8,320. Earlier main support, close to $ 8,320, will now likely act as a crucial resistance for bitcoin. In addition, Fibonacci's 50% retracement level is close to $ 8,330.
A daily close above the $ 8,560 resistance is required to initiate a decent recovery in the short term.
On the other hand, the price may continue to fall to $ 8,000. Also, if there is a drop below the $ 8,000 support, bulls will probably give up. The next big support is $ 7,650.
Looking at the chart, bitcoin price is clearly trading at a strong downtrend below resistance levels of $ 8,320 and $ 8,560. Thus it remains in a downtrend until there is a daily close above $ 8,560.
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