Bitcoin has been pushed below $8,000, and it is likely to reach to $7,300.
This digital currency found acceptance below $8,217 yesterday at 12.00 UTC. This shows that the corrective rally that stemmed from the $7,240 low has ended. Bitcoin was pushed further to $7,716 today, and this is the lowest it has been since March.
Twitter’s ban and its effect on bitcoin price
The decision by Twitter to ban ads related to token sales, initial coin offering (ICOs), wallet and exchange services may have been a factor in pushing down the prices.
However, it’s important to note that bitcoin was trading lower, well before the news of the ban of ICO ads hit the wires. The bitcoin trading news has been anticipated widely in the media.
When this bitcoin trading news was written, the bitcoin price index showed that the average price on exchanges was at $7,935. This means that it is down by 2.5 percent from yesterday’s close.
Presently, the downside seems to have been capped at $7,700. This cryptocurrency may rise to $8,271 (now resistance, former support) via a bullish price divergence according to the 1-hour chart.
There could be a retest of about $8,550-$8,600 if there is an upside break on the 1-hour chart’s falling channel. However, it is easier said than done as the daily chart suggests otherwise.
The close below $8,211 pushed the five-day moving average below the ten-day moving average. The relative strength index has also moved into bearish territory – below 50.00.
All indications point to a revisit of the recent $7,240 low. Any corrective rally that goes above the resistance and former support of $8,271 will be impermanent.
An insignificant corrective rally that pushes it to $8,271-$8,300 is not impossible, but the gains may not be sustainable.
Overall, the cryptocurrency is expected to revisit the March 18 low of $7,240. It could be pushed further towards $6,600 if there is a violation.
At this point, this bullish outlook can only be revived by a convincing break of $11,700 and above.