Bitcoin Price Outlook:
- Bitcoin’s price shows a constant decline at the beginning of the week.
- Bears are taking control while there are still hopes for a bullish breakout.
Bitcoin price outlook: Continuously falling
The week started negatively in the crypto sphere. The “king of cryptocurrency” has highlighted across the board, with bitcoin posting fresh multi-day lows below the $8,200 handle. It has already pierced the support (now resistance) level at $8,663.29, where it has a confluence with the 200 SMA at the 4H chart.
The focus is now shifting towards the south, breaking the range-bound that has been established since mid-October. It seems like the sellers are taking control of the situation, demonstrating that bears’ force is strengthening, and the ongoing sell-off should gain traction in the upcoming hours.
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Bears are looking for a critical demand zone
The price action has been strongly pointing downwards and this allows the BTC to accelerate the bearish bias. The death cross witnessed on both the 50 and 200 SMA on the 4H chart would justify it.
The nearest support lies at $7,761.78, where it’s also located a demand zone that is key for further multi-week lows. If such a level gives up, then the bears could point towards the $7,377.97, where the lows from mid-October are located. Afterwards, the fall could accelerate to test the $7000 psychological barrier for the sellers in the BTC/USD pair for the short and mid-term.
Bitcoin’s bullish outlook
On the upside, there is a resistance area located at $8,663.29, where a breakout should open the doors to test the $9,351.89 level. Thus turning the cryptocurrency into a range and making it uneven on a short-term view.
However, the clearing of such a region should strengthen the bulls’ force towards the $9,775.93. If it gives up on the current buyers’ wave, then a rally could target the $10,411 neighbourhood. According to the technical oscillators in the 4H chart, the RSI indicator is hovering around the oversold territory. With momentum pointing downwards, favouring further selling pressure and thus new lows for the coming hours.