- Bitcoin’s reject at $8,500 hinders recovery but opens the road for declines towards $8,000.
- If the tentative support at $8,024 fails to hold, chances of refreshing of $7,700 support are very high.
Bitcoin is among the daily losers on Wednesday following the rejection from levels just above $8,500. The correction from the lows formed marginally above $7,700 initially stepped above $8,000 before extending the bullish leg to a weekly high of $8,530. At the time of writing Bitcoin is trading at $8,221 amidst a growing bearish momentum.
Elsewhere in the cryptocurrency market, the Libra Association has scheduled a meeting with its partners on Thursday. The meeting will take place in Washington D.C and is expected to discuss the Libra Charter. Ahead of the meeting, the Wall Street Journal reported that Visa and Mastercard and other unnamed partners are getting cold feet over their involvement with Libra.
Bitcoin confluence levels
According to the confluence levels in a daily range, the first support is seen at $8,195. The buyer congestion zone is home to the pivot point one-day support one, simple moving average 100 one-hour and Bollinger Band four-hour middle.
Further down, the next support level is seen at $8,024 and it will try to prevent a breakdown below $8,000. Forming the confluence are the Fibonacci retracement level 161.8% one-day and the pivot point one-day support two. Additional dips towards $7,500 will find refuge at $7,767 as highlighted by the previous week low.
On the upside, the most significant barrier is placed at $8,367. The cluster of indicators forming the resistance at this level consists of the 61.8% daily, Bolling Band 61.8% one-day, SMA five four-hour, SMA 10 four-hour SMA 50 four-hour and the previous high four-hour.
Glancing higher, correction towards $9,000 will find hard time at these zones: $8,538, $8,709 an $8,966.
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