Tanya Abrosimova
Independent Analyst
- Bitcoin is rangebound with bearish bias under $7,700.
- A sustainable move above $8,000 is needed to improve the technical picture.
Bitcoin (BTC) has been controlled by sellers since the weekend. Unsuccessful attempts to settle above critical $8,000 triggered a sharp sell-off and took the price to $7,511 during Sunday hours. While the coin managed to recover to $7,674, it is still vulnerable to further losses.
Bitcoin’s technical picture
On the intraday level, the initial support for BTC/USD is created by an intraday low of $7,522 strengthened by the lower boundary of 1-hour Bollinger Band. This barrier is closely followed by Sunday’s low of $7,511 and the psychological level $7,500. A sustainable move below this handle will open up the way towards the next bearish aim of $7,330 (the lower boundary of 1-day Bollinger Band) and psychological $7,300 strengthened by the lower line fo the previous consolidation channel.
On the upside, the first resistance lies with $7,800 (SMA200 - Simple Moving Average - on 4-hour chart). Once it is cleared, the recovery is likely to gain traction with the next focus on critical $8,000 supported by SMA50 (4-hour chart). We will need to see a sustainable move above this barrier to improve the technical picture. The next resistance comes at $8,250, created by a SMA100 (4-hour). It is closely followed by and an upper line of the above-said channel on approach to $8,300.
BTC/USD, 4-hour chart
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