Bitcoin Price Analysis: BTC/USD breaks down towards $7,000


  • Bitcoin is struggling to stay above $7,300 amid expanding volatility.
  • The rising wedge pattern support break triggered the ongoing retracement towards $7,000.

Bitcoin price has continued trade under duress this weekend. The hope that the price will advancement towards $8,000 could happen before December has been thwarted by increasing selling pressure. At the time of writing, BTC is trading at $7,326 following a 3% loss on the day.

The correction from the November lows at $6,533 fizzled out forming a high at $7,878. The bears took advantage of the vulnerable bulls, sending Bitcoin below the 50 SMA and the 100 SMA on the 1-hour chart.

Bitcoin forced its way through the rising wedge pattern support. The impact of the pattern is the force behind the ongoing chop offs. The 50% Fib retracement is in line to offer support slightly below $7,250.

The Relative Strength Index appears to be nurturing a recovery from the oversold. If the upward correction is sustained, Bitcoin is likely to push the reversal above $7,500 in the coming sessions. However, the danger of touching $7,000 is still very apparent.

BTC/USD 1-hour chart

 

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