Bitcoin Slides Below $8K, However Downside Might Be Restricted

Twitter’s decision to ban all advertisements related to first coin offers (ICOs), token earnings, markets and wallet providers may have played a role in driving costs lower, although it’s well worth noting that bitcoin was trading on the back foot nicely before Twitter news hit the wires, and that the ban news was widely anticipated in the press.

Released at Tue, 27 Mar 2018 10:00:04 +0000

The bears continued to be in the driver’s seat on Monday, compelling bitcoin (BTC) under $8,000 and opening up the doors for a re-test of current lows near $7,300.
As of writing, the normal cost on top exchanges, as reflected by CoinDesk’s Bitcoin Price Index (BPI), stands at $7,935 – down 2.5 percent from the previous day’s closing (according to UTC).

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Further, the Monday’s closing below $8,211 (61.8 per cent Fibonacci retracement) pushed the 5-day moving average (MA) under the 10-day MA (keep cross). The relative strength index (RSI) has rolled over to the bearish territory (under 50.00).

A upside break of this falling channel can produce a re-test of8,550-$8,600, however, which is easier said than done, as indicated by the bearish installment over the daily chart below.

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Hence, prices seem set to revisit the current low of $7,240 and some other corrective rally over $8,271 (former support, today resistance) will probably be transient.

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  • A minor corrective rally for $8,271-$8,300 can’t be ruled out, but the sustainability of profits is in question.
  • Overall, bitcoin looks set to revisit the7,240 (March 18 non). A violation there would open up downside towards $6,600.
  • In the bigger scheme of things, only a convincing break above $11,700 would revive the bullish outlook.

Certainly, the bears are in control, however, thus far the downside has been capped around $7,700. The 1-hour graph shows the cryptocurrency could muster to   $8,271 (preceding support, now resistance) on the back of a bullish price-RSI divergence.

The rounding top-like pattern has established the region approximately $9,000 because of stiff resistance zone.

Weekly graph (Vertical scale): Major support is found at $6,600

1-hour graph

Daily graph

The cryptocurrency found acceptance beneath the crucial support of $8,217 (prices according to Bitfinex) at 12:00 UTC yesterday, implying that the corrective rally in the low of $7,240 has ended.
The climbing weekly 50-MA meets the increasing trendline (drawn from the July low and September low) approximately $6,600.