Bitcoin price analysis: BTC/USD trapped in bearish trend; McAfee urges to keep calm and HODL on

Bitcoin is reclaiming territory below $8,000.
Crypto supporters don't lose hope for recovery.

Tanya Abrosimova Independent Analyst

Bitcoin slumped over 4.5% since this time yesterday to $7,920 at the time of writing. The coin is moving within a clear downside channel visible on the hourly chart with critical resistance levels clustered around $8,400 area. Downside trendline is registered at $8.384, marginally below psychological $8,400, while 50% Fibo comes at $8,424. Considering strong resistance it is unlikely that we will see BTC above this area any time soon.

Meanwhile, crypto enthusiasts go on insisting that Bitcoin and other coins have strong long-term potential, which will be unlocked eventually after a period of weakness. Thus, John McAfee urges traders to be prepared for the upcoming crypto rally due to influx of capital from institutional investors.

"Institutional investors are preparing to enter the cryptocurrency market with a vengeance. They are generally long-term investors and will be pumping billions into the market. Expect the top ten coins to go through the roof fairly quickly. The bulk of alt coins will soon follow," he wrote in his Twitter account.

BTC/USD, the hourly chart