Bitcoin Mounts Recovery But it Seems Bears Remain Dominant
Within the current week, there has been a powerful downward move under $9k and $8.8k. The pair even continued under the support at $8,680 and was well-established under the 100 hourly SMA.
The pair was able to form a fresh low close to $8,512 and it is now correcting losses. A look at the pair’s hourly chart reveals the formation of several barriers close to $9k and $9.2k. A crucial observation on the same chart is the formation of a selling flag with support close to $8,735.
The initial major barrier is close to $9k. The ability of the buyers to secure momentum over $9k could lead to the immediate crucial breakout area close to $9.2k and the 100 hourly SMA. Hence, the price needs to surge past $9k and $9.2k to begin a new increase ahead.
The failure to retrace over barriers at $9k and $9.2k could lead to more downsides. The first support is close to a flag trend line at $8,735.
If the pair breaks under the flag support could pave the way for a new decline under $8.7k and $8.6k. If the decline happens, the pair might extend the downside move under the $8,512 swing low.
The immediate key support and buy territory is close to $8.2k. As for the medium term, there is likelihood that the pair would bounce back if it does not close under $8k.
Featured image courtesy of Wallpaper Abyss. Source: Crytopress.