To withstand the onslaught of the bears on the key $7455, the bulls need to gather forces in order to neutralize the threat of short-term price reduction. This is the opinion analyst CoinDesk Omkar Godbole.
At the time of writing, BTC is trading around $7550 11% below the previous high ($8502), recorded 24 July on the stock exchange Bitfinex. However, the $7.5 to remain 30% higher in relation to recorded 24 June low of this year ($5755).
On this basis, it is safe to say that the bullish trend remains relevant. The $7450 coincides with the Fibonacci correction level 38.2% of the July high, which indicates the probability of a rebound upwards. On the other hand, some technical indicators are signaling about a possible continuation of the short-term dominance of sellers in the market.
So, the moving average (MA) with periods of 5 and 10 on the daily chart says about the prevalence of bears in the short term. The thesis confirms a break-down by a rising trend line drawn along the lower value line of RSI.
On hourly chart below we can see that a relatively heavy MA with periods of 50, 100 and 200 have the inclination “to the South”, while being consistently one below the other (from slow to fast):
The relative strength index RSI is pointing down, while values below 50.
All of this data is also indicating the bearish pressure on the price of the first cryptocurrency and a high probability of breaking down $7455 within the next 24 hours. Price consolidation below this level would reinforce the bearish sentiment in the short term, but will also open the door to the psychological mark of $7000.
On the other hand, the sudden closing prices above $8000 could give the bulls the strength to continue the upward movement.
We will remind, according to analysts Fundstrat Global Advisors, even the fall of bitcoin prices to $3200 will not break the long-term uptrend.