Bitcoin price analysis: BTC/USD waits for European traders below $8,000

BTC/USD has settled in a new range capped by $8,000.
The vital support is seen at $7,300.

Tanya Abrosimova Independent Analyst

Bitcoin broke below $8,000 handle and touched $7,717 - the lowest level since May 23 - during early Asian hours. The first digital coin continues moving within the long0term upside trend, but the bearish correction might turn to be deeper than it was initially expected. Bitcoin dominance dropped below 56% from as high as 60.54% reached in May.

At the time of writing, BTC/USD is changing hands at $7,924 with nearly 8.5% of gains on a day-on-day basis. The coin is vulnerable to new losses once the European traders wake up and see the price below $8,000 handle. Their reaction will define Bitcoins fate: if they decide that its a good chance to increase long positions, we will see BTC/USD shoot back towards $8,800-$8,900. Otherwise, the sell-off may be extended to $7,300 into view. This area is protected by the lower boundary of the above-mentioned channel and the lower line of 1-day Bollinger Band.

The Relative Strength Index (RSI) on a daily chart has turned to the South, which supports be bear case scenario; moreover, the weekly RSI also points downwards, ready to exit an overbought territory.