Bitcoin Price Analysis – Bitcoin Lost Key Support Following 18% Drops In Three Days

• Bitcoin resumes short-term correction after failing to advance above $9200.
• If Bitcoin continues to drop, the next selling target would be $7500

Since our previous crypto trading signals, Bitcoin has seen a huge price movement to the downside following a small bounce to $9200 last week. This time, BTC lost 18% in three days to reach a daily low of $7700. As of now, Bitcoin is priced $7940 with 9.23% losses overnight. We may see more selloff if sellers continue to show strong interest in the market.

Key resistance levels: $8500, $8750
Key support levels: $7700, $7440

Bitcoin (BTC) Price Analysis: Daily Chart – Bearish

After failing to recover above $9200 last week, Bitcoin dropped heavily and broke beneath three months rising trend line (blue) and at the same time wiped major support of $8200 yesterday. Following this price actions, Bitcoin further extends selling to $7700 before bouncing a bit up.

If Bitcoin resumes selling pressure and dropped below the first red line of $7700, the next level to consider as support is the next red line of $7440 – the October 2019 low. However, if the $7700 functions as temporal support, we can expect a recovery to $8500 and $8750 to retest the blue trend line. At the moment, it appeared that sellers are still showing interest in the market.

Bitcoin (BTC) Price Analysis: 4H Chart – Bearish

The latest price drop has led Bitcoin to the lower boundary of the channel that was forming since mid-February. Though the bulls attempted to break the channel last week but failed after a massive supply. However, the bearish trend remains intact in the channel. There’s hope for a retracement.

If Bitcoin continues to respect this descending channel, a possible retracement may reach $8500, where the orange resistance area lies. For that to happen, Bitcoin would need to reclaim $8000 level. Should the price breaks down the channel, especially below $7700, new support may establish around $7500 and below.

BITCOIN SELL ORDER

Sell: $7980
TP: $7700
SL: $8077