- Bitcoin slump broke the long-term ranging channel starting a new downtrend towards $7,200.
- Technical levels suggest the buyers have the upper hand but do not have enough power in them to sustain gains above $7,500.
Bitcoin perpetual swap contract on Bybit is lethargically hovering above $7,400. Correction towards $7,500 failed to garner enough momentum as the price hit a snag at $7,466 (intraday high). Bitcoin price is dancing at $7,424 at the time of writing. The pivotal movement between $7,500 and $7,300 clearly shows that indecision is clouding the market.
A break from the range coupled with an increased trading volume will boost Bitcoin towards the broken support at $7,800. The Relative Strength Index (RSI) recovery from levels under 20 is testing the 50 levels. The gradual upward slope emphasizes a strengthening bullish grip. If RSI pulls towards 70, more buyers will be rattled out of hibernation. Increased demand for Bitcoin will eventually catapult the price above $8,000.
On the other hand, as long as the short-term 50 Moving Average (MA) on the four-hour chart widens the gap under the 100 MA, Bitcoin bears will have the upper hand. Besides, the double-cross at $8,220 means that Bitcoin will settle for lower consolidation before another rally is staged to recover the ground towards $9,000.
The inability to recover from the dive this week shows that Bitcoin is yet to find a key support. In this case, most traders are expected Bitcoin to test $7,200 before bouncing to re-enter the broken ranging channel support.
Data from Bybit exchange show Bitcoin last exchanged hands at $7,457.