The cryptocurrency market has continued its decline. Bitcoin (BTC) has been unable to gain a foothold over the level of resistance, and at the moment, there is the potential for a developing downward movement. Binance Coin (BNB) has also had a 6.48% price drop, the biggest since yesterday.
BTC could not maintain its price above the $8,000 level, resulting in a four-week low. Below is the relevant data at press time:
Market Cap: $143,581,280,183
Volume (24H): $19,288,505,107
Change (24H): -2.57%
BTC/USD: Could the Previous Bottom at $7,500 be Updated?
Yesterday, BTC tried to fix its price above the $8,200 mark but failed. As a result, there has been an increasing downward movement.
Looking at the 1H chart, the indicators are predicting a bounce back to $8,000 soon. The relative strength index (RSI) touched the 20 mark, confirming an exhaustion of bears to push the price deeper in a short-term scenario. Respectively, this prediction could occur through the end of the current week. However, it is likely to be a correction after the decline rather than the start of a bullish trend.
At the moment, quotes were able to break through the support area. The next crucial area is located at the $7,670 mark. The price also broke through the lower border of the Bollinger Bands, indicating pressure from sellers. Confirmation of a price increase will be strong growth and the breakdown of the $9,800 level.
However, there is every chance that we will see a continuation of the downward movement to its first target at $6,875. The breakdown of the ascending trend line on the RSI indicator is in favor of this movement - such a signal indicates the potential for updating a local minimum.
At press time, BTC is trading at $7,872.