- Summary:
- BTCUSD is testing key support levels at below $7900 as price action for Bitcoin tilts towards the side of the bears once more.
Bitcoin (BTCUSD) is once more pushing for a challenge of a key support level on the long-term charts. After making a major move lower to breach the 8289 support level, Bitcoin attempted to make a pullback to this level but was rejected. This is not unexpected, as the broken support usually becomes a new resistance in role reversal.
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Bitcoin (BTCUSD) Price Outlook
BTCUSD is currently trading at 7894.97 as at the time of writing. At this price level, the pair is already pushing below the lows made on Wednesday at 7897. If this move is sustained, this should bring the pair into contact with the long-term support at 7707.36, the weekly lows of the last three weeks.
A downside break of the 7707.36 price level will bring BTCUSD close to the previous low of May 27 at 7011, and also close to the 23.6% Fibonacci retracement level at 6998. Therefore, we expect the next line of support to be in the zone that starts from 6998 to 7015. This could be the initial target if price action breaks below 7707.36.
On the flip side, maintenance of the 7707.36 support as has been the case in the last three weeks, could see BTCUSD making another run to retest 8289. This situation could also play out for a nice set of range trades over a week or two before price breaks any of the aforementioned barriers.