Bitcoin hasn’t really had a good post-halving record. The top cryptocurrency has plunged over and again and this time, it seems bitcoin’s consistent price swings may be sending it towards heights we haven’t seen in a few weeks.
Bitcoin failed a test at the $8,900 critical support level and is now trading conveniently below it. Amid the downswing, sellers are exerting a lot of pressure and seem to be in control of the markets.
Consequently, the bears are looking to drive prices towards the next support at $8,500. If they succeed, we may be seeing bitcoin lose more percentages to selling pressure as price make new low highs at around $8,100 in the near-term.
BTC/USD Technical Analysis
BTC/USD pair was driven by a hard bear rally which saw the price crashing below the initial support at the 61.8% Fibonacci retracement level ($9,117). At around 21:39 hours UTC, on May 24, the price continued further downwards while failing to find support above the 50.0% and 38.2% ($9056 and $8996) Fib levels respectively.
The price is currently tethering at $8,721 after the bulls took a turn to control the market since the early hours of May 25. If the bears return a counter-rally, we may expect prices to fall towards the $8,500 mark (below the 0% Fibo level) which will begin a new bearish cycle towards $8,100.
In the event that the current bull takeover lingers for a while, the immediate resistance is found at the 0% Fibo levels ($8,800). Although the price is expected to overcome this hurdle quite easily, it needs to conveniently sit above $9,300 before a full-blown bull market can come to play.
Above $8,800, further resistances lie between $8,900-$9,300. If the bulls manage to break these levels, BTC may be headed for the $9,500 in the longer-term perspective which remains bullish.
Analysts Are Bearish In The Short Term
Respected technical analysts continue to press for a further price retracement. According to popular crypto twitter analyst, Bitdealer, Bitcoin will see further bearish movement until it completes an expected retracement.