Bitcoin has had a rocky run in recent days, rising to a high of $9,200 last Saturday, before encountering insurmountable resistance that has triggered a short-term downtrend. This downtrend took BTC into the middle of the $8,000 region, but the losses may not be over.
One analyst now notes that Bitcoin recently closed below an important technical resistance line, which could be a sign that the crypto currency will eventually return to its main support in the lower $8,000 region.
Bitcoin fights for upward dynamics
At the time of writing, Bitcoin is trading slightly lower at its current price of $8,650, a slight drop from the daily highs of just under $8,800.
It is important to note that Bitcoin has risen several times in recent days to $8,500, suggesting that this region could be a support zone for the crypto currency in the near future.
Nevertheless, the recent rejection of BTC at $9,200 has damaged the short-term technical strength, possibly indicating that Bitcoin may fall further down before enough support is found to catalyze the next uptrend.
HornHairs, a popular crypto analyst on Twitter, believes that BTC could fall as low as the last weekly opening to around $8,200 before finding any meaningful support.
BTC just below this important trend line could mean trouble for further development
Josh Rager, another prominent analyst on Twitter, seems to agree with the possibility that BTC could see a downward movement towards the lower $8,000 region, but he notes first that he believes BTC could experience a push to the upside before this decline occurs.
“CLOSED DAILY BELOW 200 DMA AFTER A DECLINE OF OVER 8%. COULD POSSIBLY SEE A RISE BEFORE IT GOES FURTHER DOWN AND SUPPORT AT $8000 TO $8200 SHOULD BE SEEN FOR AN UPSWING. A BREACH BELOW $7700 WOULD BE BEARISH, BUT BTC IS NOT EXPECTED TO FALL THAT LOW AT THIS POINT,” he said.