This time last week, the Bitcoin news first showed that there could be a potential drop to $6,000 for the most dominant cryptocurrency. Some analysts even pointed to the $3,000 as the next level for Bitcoin. And even though there are still many people who think that Bitcoin is trapped, fewer of them think that BTC will reverse to as low as $3,000.
What seems more and more obvious is the fact that Bitcoin cannot go upwards right now. The good news is that it has stabilized at this point and traders are hopeful that a strong move to $8,500 will occur over the coming days.
What’s evident in the cryptonews is that since the drop from $10,300, Bitcoin is trapped in the $8,000 to $8,400 region – and other altcoins are following. There is support at $8,000 and $7,850 as we have seen so far – right after the dominant cryptocurrency formed a double bottom at $7,715 and crawled above the 20 Moving Average on the Bollinger Band Indicator.
The last two attempts to make a strong upside were capped around $8,520 which is possibly the result of the volume that is continuing to frighten investors. If you are following the latest Bitcoin news, you can see that the BTC price has ridden right along the MA and met resistance once breaking above the upper arm in the $8,520 area. The digital asset is still closing below the 200-MA at $8,736 and the point is still acting as resistance.
Generally speaking, Bitcoin is trapped and attempting to restore some of its lost territory in the short term. However, the longer time frame indicators show that there is a bearish bias – as compared to the long-awaited bullish momentum.
Currently, a drop below $7,800 is likely to raise another set of concerns and the stats show that there is limited demand in this area. Even though many people expect BTC to rise soon before dropping low, nothing can ever be assumed and no run is ever guaranteed.
A more positive bullish scenario is the one where Bitcoin overcomes the $8,500 region and then the $8,760 region – confirming a change of trend and proving that there is a bullish momentum. However, the reality is that Bitcoin is trapped for another day – and we don’t know what to expect in the near future.
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