- Bitcoin remains trapped beneath its previous support level
- Bitcoin finds strong support at the $8,200 level
- The major resistance of Bitcoin is near $8,500
Bitcoin News Today – The price of Bitcoin (BTC) has been relatively stagnant over the past day, after plunging from its year-to-date high. BTC started correcting lower from its 2020 high of $9,200 against the U.S. dollar. Nevertheless, the price of the digital currency is still in an upward trend and it could find buyers close to the $8k or $7,670 mark.
Bitcoin Finds a New Strong Support Level
After forming a 2020 high close to the $9,200 mark, Bitcoin has been on a downward trend. The price of the digital currency broke below the $9k and $8,800 support levels to enter a bearish zone. The bears were able to push the price of the digital currency beneath the 23.6 percent Fibonacci retracement level of the previous swing from the low of $6,836 to the high of $9,191.
Bitcoin (BTC) Price Today – BTC / USD
The digital currency continued its downtrend and broke below the major $8,500 support level. There are several crucial support levels on the downside close to the $8,200 and $8k levels. However, the major support of the digital currency is close to the $8k level since it is close to the 100-day simple moving average.
Moreover, the 50 percent Fibonacci retracement level of the previous swing from the low of $6,836 to the high of $9,191 is also close to the $8k level. As such, the digital currency remains supported on the downside if the price corrects further.
On the upside, the major resistance of the digital currency is close to the $8,500 mark. There is also a formation of a bullish flag and declining channel with hurdles close to the $8,500 mark on the daily chart of the BTC/USD trading pair. Hence, the world’s most dominant digital currency needs to break over the $8,500 and $8,540 hurdle points to start a fresh increase. Furthermore, a break over the $8,600 mark would pave the way for more gains towards the $9k and $9,200 marks.
Will Bitcoin Break Below the $8k Level?
Bitcoin’s major support is the $8k level. The $8k mark is the major buy zone for the digital currency. If the digital currency breaks below the $8k level, the next major support is close to the $7,670 mark. The previous breakout area was close to the $7,670 mark and it now coincides with the 61.8 percent Fibonacci retracement level of the previous swing from the low of $6,836 to the high of $9,191.
As such, if the digital currency breaks below the $7,670 and $7,600 levels, it could negate the present bullish view. If this happens, the price of Bitcoin might return to the $6,500 support level.