Cryptocurrencies have come under fresh pressure
Bitcoin price struggled to hold over $ 8,000 during Wednesday’s Asian session. However, the bearish pressure, coupled with the increasing sales volume, outweighs the bulls. The entire cryptocurrency market is in the red territory, with most of the major coins registering losses at the beginning of the European session also.
Almost all of the top 20 coins show red candles on the charts. And Bitcoin SV (BSV) took the prize for the worst performing cryptocurrency of the day with a loss of 4.5%. Cosmos (ATOM) and Tezos (XTZ) followed closely, with losses of more than 3% each.
The total market capitalization of cryptocurrencies dropped from $ 223.3 billion to $ 218.5 billion, with Bitcoin representing 66.3% of the total.
As for the fundamental news, Opera has announced that it now facilitate making payments with Bitcoin (BTC) directly inside the web browser. Opera detailed in a press release that its 350 million users can now send and receive BTC directly from the browser, as well as use the cryptocurrency to buy goods and services on e-commerce websites.
The bears pushed BTC/USD under $ 8,000
Over the past few weeks, Bitcoin has gone through a series of up and down movements. Now the level we need to keep a close eye on is the key support at $ 7,800. This region has been tested repeatedly without giving in. In addition, a rebound from this area resulted in significant movements above $ 8,000. For example, the most recent correction pulled the price over $ 8,300 before hitting $ 8,750.
On the upside $ 8,800 is the most significant resistance. The movement above that level has been unsuccessful in the last month. If BTC/USD manages to break through this resistance, the chances of raising above $ 9,000 will be huge.
From a longer-term perspective, BTC/USD has been moving within a narrowing range over the past 4 weeks, following the strong downside trend that played out between June and September. Technically, the price has formed a bearish flag on the daily chart. This makes the BTC/USD pair vulnerable to further potential downturns if current daily support recedes. A clear break below $ 7,800 can easily push Bitcoin to $ 6,400 (key support for the downtrend in 2018). Failure to hold above this level could open the door for a new wave of sell-offs to the next critical support at $ 5,000.
All indicators, including the Relative Strength Index (RSI), indicate that the trend is in the hands of the bears. The RSI plunged close to the oversold area while the Moving Average Convergence Divergence (MACD) is below the zero line.
Author: Silviya Velcheva
* The views expressed in this material do not constitute a recommendation or advice for the purchase or sale of cryptocurrencies in the digital assets market or other financial instruments. The predicted forecasts meet the expectations of the author of the material and may not materialize. Trading in currencies, contracts for differences on margin or cryptocurrencies poses a high risk and may not be suitable for all investors. Past results are not a guarantee of future success.