It appears that this leading crypto coin by market cap is facing a decision point today. The week began with huge price declines for the coin. Things have not been so good in the past three days. Bitcoin has been slightly trading above the support area of $8000.
Ground For Positive Correction?
Many have asked where the new support line of $8,000 is gaining its strength. Well, it is from the 78.6% Fibonacci level. More strength is also provided by the mid-term ascending trend-line that the coin has enjoyed in the past. Bitcoin also has a historic support area around the current price of $8,000.
From the bullish point of view, the fact that the coin has been in the $8,000 support for the past three days may mean a lot. This could be a great ground for a positive correction that might happen anytime. But why would the bulls anticipate that correction that long? They are trying to suggest that if it did not occur until now, then it might not happen at all. From the look of things, it appears that the coin is slowly losing its momentum.
Time To Make The Most Critical Decision
From the charts, BTC might be forced to make a very important decision. It has to decide based on the short-term descending trend-line as well as the mid-term ascending trend-line that has been witnessed. The total market capitalization for the entire crypto market is now at $221 billion. The charts also show that BTC’s market capitalization is at 4146 billion. The dominance index for the coin is, however, at 66.2%.
The Key Levels To Keep An Eye On
The support and resistance are one of the major keys to watch. The first level of support to watch is $8,000. It has been like this for the past three days. Should the coin break down further, then the next support could be around $7700 to $7800. But, in any case, the last one fails to hold, and then the next target would be $7,400. This has been the lowest price of the coin since the parabolic move that occurred in June 2019.
More Correction Expected
A correction is also expected in the near future. Should that occur, BTC would face $8,200 as the initial possible target, which is a descending trend line. On the other hand, the next resistance area will be around the zone of $8,300 and $8,400. The support area of $8500 is also on the list. This will be the wedge’s declining trend-line, alongside the 50-days moving the average line.
The RSI Indicator & The Trading Volume
The RSI appears so bearish, and it is currently approaching the 30-level. The market makers have reached the trading volume yet. It is still very low and minimal compared to the monthly average.