- Bitcoin breaks above the trendline resistance for the first time since the drop on Tuesday.
- $7,900 is functioning as the immediate support area but $7,750 is the next viable key support zone.
Bitcoin price action remained largely unchanged over the weekend session. An attempt to break above $8,400 was thwarted by the ballooning selling activities. At the same time, the dips under $8,000 were protected above $7,900.
The price action on Monday is relatively quiet although Bitcoin is trading lower by 0.65%. An intraday high of $8,066 has been achieved following an opening of $8,052. At press time, the price has adjusted to 7,990 amidst a growing bearish momentum.
The short-term one-hour chart shows the price above the descending trendline resistance. However, the immediate upside is capped by the simple moving average resistance whereby the 50 SMA is hindering growth at $8,109 and the 100 SMA currently stands in the way at $8,136.
The relative strength index (RSI) is grinding lower after a rejection from the 50’s range. Moreover, the moving average convergence divergence is stuck under the zero line signifying the control the bears have over the price. Apart from the support at $7,900, the next support target is $7,750.
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