• BTC/USD has recovered from the intraday low, but the upside is limited.
  • A sustainable move below $7,000 will worsen the short-term outlook.

Bitcoin hit the intraday bottom at $7,082 ahead of the European opening. At the time of writing, the first digital coin is changing hands at $7,178, mostly unchanged in recent 24 hours and down 1.7% since the beginning of Wednesday.  

Bitcoin's technical picture

Bitcoin broke free from the short-term range where it had spent most of the time since the beginning of December. A failure to recover above critical $7,350 (61.8% Fibo retracement for the move from $3,226 to $13924) increased the bearish sentiments on the market and pushed BTC/USD below the local support of $7,250. The next downside target is created by a psychological $7,000. However, the bears may have a hard time pushing the price below this handle as it is reinforced by the intraday low and the lower line of 1-hour Bollinger Band. 

Once it is broken, the sell-off may continue towards the lower boundary of the daily Bollinger Band at $6,670 and the recent bottom of $6,526.

On the upside, we will need to see a sustainable recovery above at least $7,250 to improve the short-term technical picture. The next strong resistance is created by the confluence of the above-mentioned 61.8% Fibo retracement and SMA200 (Simple Moving Average) 1-hour at $7,350. If it is broken, we may see a recovery towards $7,400 (the upper line of 1-hour Bollinger Band) and $7,868 (November 29 high).

BTC/USD, 1-day chart

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