My2Sats

BTC Update! Bulls struggle on the bounce. $7.5k incoming?

COINBASE:BTCUSD   Bitcoin / U.S. Dollar
Quick update for what I am personally watching. I've said for months now that in my opinion our strongest support has been down at $7400-7750 area and we have yet to re-test this area. We certainly don't have to re-test it but would be a strong support area in my opinion. With that said, yesterday we broke my pattern bearish at about $9450 and fell to $8160 (about a 14% drop and probably the easiest short setup I've seen in a long time). We had some decent volatility with coinbase even seeing a bounce back towards $9k with other exchanges not bouncing quite as hard but many also dipping below $8k already for their low. So we had overnight for things to begin settling down with the price action but RSI remains very oversold on 4 hour time frame.
So on coinbase we have $8160 as our temporary low for now. Resistance above way up at the bottom of our original pattern (what was once support often becomes future resistance). Strong support I believe is at $7400-7750 area. If we do retest that area and it fails as support, there really is not many logical support areas nearby. If bulls area able to hold yesterdays lows; in order to shift trend, we need higher lows and higher highs to start taking shape. Bears extremely comfortable here as the longer it runs sideways or small bounces play out, the more RSI levels have a chance to cool off.

Just My 2 Sats!