Bitcoin price analysis: BTC/USD Bitcoin continues with the trimming of gains below $8,000
|- Bitcoin price pullback expected on reaching the 50 SMA support, while $7,900 is a short-term hurdle on the upside.
- Technical indicators show bearish signals in the short-term but buyers are seeking entry following bears’ exhaustion.
It has been a rollercoaster ride for Bitcoin trading this week. First, the largest cryptocurrency by market capitalization pulled most the coins with it at the beginning of the week when it broke above the long-term critical resistance at $8,000. BTC/USD seemed stable above $8,200, but it the bullish trend turned bearish yesterday pushing Bitcoin below the trendline support as covered earlier this morning.
The short-term support at $7,900 has been breached and BTC/USD is currently exchanging hands at $7,859. The 50% Fibonacci retracement level with the last high leg of $8,490.39 and a low of $7,207.40 is working as the immediate support. The bearish trend is threatening to break this support, similarly, the stochastic is still in the oversold levels signaling that selling pressure will continue to dominate in the medium-term.
However, in the event, the 50% Fib support is broken, the 50 SMA on the 120-minutes chart is a dynamic inflection position. Bitcoin price is likely to pull back on the 50 SMA support at $7,761.73; a move that will see it break the short-term resistance at $7,900 and attack $8,000.
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