- BTC/USD has settled in a new range capped by $8,000.
- The vital support is seen at $7,300.
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.
BTC/USD, 1-day chart
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.