- $8,000 is a critical level for Bitcoin bulls as it remains the make or break level.
- The current consolidation is likely to culminate a reversal according to the technical analysis.
Bitcoin bulls seem to be getting exhausted due to the failure to sustain growth above $8,000 even after staging several recovery attempts. Following the initial surge of the price May where Bitcoin hit highs above $8,000 for the first time in 2019, a drop occurred sending Bitcoin below $7,000. However, quick support at the 50% Fib level from the last drop from a high of $9009.94 to a low of $3,840.85 close to $6,500.
The price bounced off the support bring Bitcoin right back to where it was. A continuation of the surge pulled Bitcoin to new 2019 highs at $9090.94. Lack of support and declining interest resulted in a plunge that found refuge slightly above $7,400.
Besides, Bitcoin is still trading above a two-month trendline which means that the largest asset is still in a bullish zone despite the downswings experienced in the last couple of weeks. At press time, Bitcoin is trading at $7,943with the upside immediately capped at $7,950. Moreover, $8,000 is a critical level for Bitcoin bulls. Support above this will give the buyers a chance to gather strength and attack other resistance levels at $8,100, $8,200 and $8,500 in preparation for an assault on $9,000.
The current consolidation is likely to culminate a reversal according to the technical analysis. The Relative Strength Index (RSI) is holding position above the average with an inclination to the upside. The MACD in the same daily range is slopping towards the mean level. The increasing divergence means that the short-term support at $7,900 is in danger. The safest bet on Bitcoin for the bulls is to have the price above $8,000 as soon as possible.
BTC/USD daily chart
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.