Bitcoin Price Traps in Bearish Trend: $7.8K is the Next Key Support

Bitcoin halving event has helped the entire crypto market to bounce back to the green zone. Bitcoin price also witnessed a much-awaited upward movement, and it managed to reach 10K. However, within a week, BTC price lost much of its gained momentum, and as per the current trend, it is highly unlikely to see BTC price crosses the 10K mark anytime soon. Furthermore, the slow but gradual downward movement has given indications that bears will be taking hold in the next couple of weeks.

Forecast based on Technical Analysis

Although the technical indicators are neutral about the probable side of price movement ahead, the past trend and further analysis give some hint. Currently, Bitcoin is trading between $9,200 and $8,500, which is a crucial price range. The BTC price has already been rejected a few times from $10K resistance, so it is expected that if bears are managed to push BTC below $8,200; the next significant support would be $7,800.

PC: tradingview

The daily, as well as hourly candles, give now clear signals about an upward movement anytime soon. If the BTC price is not moving above $9,150 today, we can see it fall back to $8,500 soon.

Reasons for decline in BTC price

Lately, Bitcoin has seen a very thick wall of the sale. The immense selling pressure was leading the price to sideways and expected to lead below $8,000 gradually.

Moreover, the enormous sell bid at $10K price was noticed on OKex exchange. It depicts that whales or the top traders are against positive movement of BTC price, especially beyond $10K.

Since the Bitcoin halving, the number of bitcoin produced reduced by half, leading to a scarcity of bitcoin in the market. However, the decrease in supply has not shown any significant impact on the price so far.

Analysts expect if BTC manages to break the $9,200 wall, it could reach again to $10K. Nevertheless, if the market continues to decline as technical parameters predict, we can see bitcoin below $8,000 in a couple of weeks.