We mentioned the possibility of Bitcoin re-testing $8000 again in our recent price analysis post. The bears have done it today after they broke the uptrend yesterday and confirmed it today.
The daily chart is now in a clear downtrend and BTC is currently trading below $8000. The bulls still have a chance to defend this level as there are still around 8 hours left for the close of today’s candlestick.
BTC is trading below both EMAs now but the RSI is getting dangerously close to overextended. This could help bulls and perhaps set a trap for the bears, creating a short squeeze.
The 4-hour chart shows a clear shift in momentum that happened around 24 hours ago when the bulls lost both EMAs clearly. The RSI is overextended here and could, again, help the bulls over the short term.
Similarly, the hourly chart shows an overextended RSI. Bitcoin currently has 3 timeframes with overextended RSIs, which means the bears will need a lot of strength to continue this recent bearish move.
This continues to prove that the weekly bear flag is still in play as EMAs are looking for a bear cross within the next few weeks. The RSI here is not overextended, currently at 45 points.
The monthly chart as usual is waiting for clarity from the weekly to confirm a higher low.