Currently, the price is heavily supported at this level by a visible volume range and is right in between the 200-day Moving Average and weekly EMA ribbon. BTC tested the ribbon twice in the past week and once again it was proven to be a significant support level, as it was able to hold the price above. As mentioned in our previous issue, bitcoin has never broke above the weekly EMA ribbon without a massive and continuous bull run. However, it does not mean that bitcoin price is safe from falling further. If breaking below it, BTC is expected to show a significant drop, at least to $7200.
In bullish turn of events, if bitcoin can reach above $8400, which is where the 200-day MA is currently at, then we can assume the price to rapidly recover after it’s recent fall.