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Bitcoin price pullback on Tuesday appears to be holding on to long-term support. However, the technical overview of the chart shows that a bounce, if any would be shallow. BTC/USD plummeted below $8,000 during the Asian trading hours on Tuesday and inched closer to the 30-day Simple Moving Average (SMA) support currently at $7,710.69.
- Bitcoin recovery is unlikely to touch $9,000 following the impending reversal.
- It is essential that the buyers defend the 30-day MA support to avoid further breakdown heading to $7,000.
Bitcoin Price Analysis – BTC/USD daily chart
At the time of writing, Bitcoin is trading at $7,970 representing a 1.65% loss on the day, besides it touched lows of $7,717.88. The slight recovery from the lows of the day is not a surprise to many who expect it extend the gains further up. Besides, the 30-day has led been a point of reversal on multiple accounts as observed on the daily chart. In the last four months, Bitcoin has stayed above this line and has, in turn, become a key indicator for a reversal.
The trends of the chart at the momentum, show that Bitcoin recovery is unlikely to touch $9,000 following the impending reversal. The daily chart is bearish biased while the weekly chart shows signs of buyers getting exhausted.
Moreover, the entire market seems to be getting exhausted with Litecoin making attempts to distance itself from the trends of Bitcoin by staying above $100 level. It is important to note that Litecoin is getting ready for the halving event that will see mining rewards slashed by half.
The Moving Average Convergence Divergence (MACD) increasing signal divergence shows that BTC is unlikely to make significant headway above $8,000 in the coming sessions. The Relative Strength Index (RSI), on the other hand, stay above the 50 average means support at the 30-day MA will hold ground. It is essential that the buyers defend the 30-day MA support to avoid a further breakdown that could touch $7,000. Other short-term support levels to keep in mind are $7,500, $7,400 and $7,000.
Bitcoin Key Technical Indicators
Critical resistance levels: $8,000, $8,200, $8,800 and $9,000.
Key support levels: 30-day MA, $7,500, and $7,000.
RSI daily: Sustains above 50 average; an indication of bull presence.
MACD daily: Bearish bias with increasing divergence.