Bitcoin Price Analysis: As Technical Weakness Surge BTC/USD Breakdown To $7,200 Looms
- Bitcoin price continues to weaken technically as declines under $9,000 and $8,000 grow stronger.
- The 21 and 50 EMA will continue to offer support in the meantime, giving bulls a fighting chance for reclaiming $9,200 support.
Bitcoin price technical health has continued to deteriorate over the last few weeks. There are no signals of growth but on the contrary, Bitcoin keeps sending massive selling signs. Towards the end of last week, a bearish wave swept across the market, cutting short the attempt by Bitcoin bulls to overcome the resistance at $9,350. Instead, Bitcoin tanked to test the support at $9,050.
Meanwhile, Bitcoin is trading at $9,192 after retreating from the weekend high near $9,200. Intriguingly, Bitcoin bulls had stepped above descending trendline resistance. At the time of writing, the largest cryptocurrency is dealing with an increase in selling pressure.
Read also: Bitcoin Technical Analysis: How This Bollinger Band Constriction Could Catapult XBT/USD Past $10,000?
From a technical perspective, the Relative Strength Index (RSI) retreat from the overbought (70) puts emphasis on the strengthening bearish arm. However, the Moving Average Convergence Divergence highlights the potential for a sideways trading action taking over. The MACD is currently holding above the midline and features a slightly bullish divergence.
BTC/USD 1-hour chart
As long as the technical picture remains intact, Bitcoin bulls will have a fighting chance at reclaiming the support at $9,200. Note that the price is holding above both the 50 and 21 Exponential Moving Average (EMA). This means that, even though the technical health of Bitcoin is weakening, bulls have not lost everything yet. They still have the potential to keep Bitcoin above $9,000.
On the downside, another drop under $9,000 could open the Pandora box with losses likely to increase fast towards $7,200. A lower price for Bitcoin is the only way to create demand and bring back buyers into the market. For, the fight to remain above $9,000 will continue to take precedence.
Read more: Bitcoin Price Analysis: BTC/USD In Repeat Mode Until Breakdown To $7,200 After Testing $8,500
Bitcoin Intraday Levels
Spot rate: $9,188
Relative change: -25
Percentage change: -0.28%
Trend: Bearish
Volatility: High
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John is a talented writer with over two years of experience actively contributing to the cryptocurrency industry by providing credible, interesting and easy to read the content. His main focus is on cryptocurrency price analysis and industry news coverage. Lets follow him on Twitter at @jjisige
Published at Mon, 20 Jul 2020 01:59:21 +0000
