- Bitcoin bulls run into hibernation after failing to defend the support at $8,600, opening the door for losses under $8,300.
- Tom Lee and John Bollinger believe that the current Bitcoin price pullback is healthy.
Following a few days of dancing in a tight range mainly between $8,600 and $8,700, Bitcoin dived under $8,300. The losses stopped at $8,269 before reversing briefly above $8,300. At the time of writing, Bitcoin is trading at $8,309 and features a bullish trend with shrinking volatility according to the cryptocurrencies live rates table.
In spite of the breakdown key analysts such as Tom Lee of Fundstrat and John Bollinger, the creator of the Bollinger Bands indicator believe that the pullback is healthy and there is no course for alarm. Bollinger said via a tweet:
This is a ‘logical place’ for $btcusd to find support, a pullback to a breakout level and the middle BB.
According to the prevailing trend, Bitcoin is not done with exploring the rabbit hole. A drop to the zone at $8,200, where most buyers are waiting to, is likely to place Bitcoin into a trajectory towards $9,200.
Based on the confluence detector tool, if Bitcoin price drops below the initial support at $8,259 highlighted by the Bollinger Band 4-hour lower, the previous low one-day and the previous low 1-hour, the momentum could reverse on tough $8,000. The zone at $8,000 is home to the SMA100 one-day and the previous week low.
In terms of price prediction, the weekend session is likely to witness a rally emanating from the support at either $8,259 or $8,000. Recovery will, however, have to deal with the hurdle at $8,346 (initial resistance), $8,432 (second hurdle), $8,518 (third resistance) and the last but most significant barrier at $8,691.
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