Surprisingly, Bitcoin has plunged below $8,000 after failing to break above the $9,200 resistance. The bulls have earlier broken the price range of $8,400 and $8,800 and push above $9,000. Bitcoin faces intense selling pressure at $9,200 as the market nosedived to the low of $7,822. On the downside, as the bears broke $8,400 support, the next support ought to be at $7,800.
The bears may continue and if the $7,800 is breached, price is likely to slump to the low of $7,000. From the current support, the downward move is possible if the selling pressure continues. In October, Bitcoin fell to $6,912 and in December to the low of $6,800 before the resumption of the uptrend.
In its recent fall, Bitcoin reached level 32 of the Relative Strength Index. It appears that the price is approaching the oversold region. At the oversold region, the selling pressure may be exhausted as buyers may likely emerge. Bitcoin is currently fluctuating as it reaches the low of $7,822, further depreciation will lead to the oversold region of the market.
Key Resistance Zones: $10,000, $11,000, $12,000
Key Support Zones: $7, 000, $6, 000, $5,000
Bitcoin has fallen and is approaching anlow of $7,000. The current downward move is as a result of the bull’s inability to hold above $9,000 and break the resistance at $9,200. The bull's buying power dries up above $9,000 resistance. Bitcoin's current fall will continue to its previous low at $7,000.
Disclaimer. This analysis and forecast are the personal opinions of the author are not a recommendation to buy or sell cryptocurrency and should not be viewed as an endorsement by CoinIdol. Readers should do their own research before investing funds.