Bitcoin has been dropping to lower lows almost every single day after the mini bull run we saw at the end of October. The bears were able to break below $9000 and then $8000 without any sort of resistance by the bulls.
Bitcoin saw a 6% price decline yesterday after the bears were able to break the important $8000 support level. There is, however, one concerning fact for the bears, the lack of trading volume. Bitcoin has seen a significant decline in trading volume, even yesterday after the huge crash, the volume was not impressive.
The bulls are now looking to hold the only support level nearby, $7300. We could actually see a really nice bounce from this level if the bulls can hold it.
Clearly, the daily chart is in favor of the bears but the RSI is oversold. The last time the RSI was in this area, Bitcoin saw a 40% price increase within 24 hours.
The bulls are now hoping to set an equilibrium patter on the weekly chart. A double bottom could happen as the bears are seeing a progressive decline in volume here too. Both EMAs have been lost and the RSI is not yet overextended.
This means that the monthly higher low hasn’t been confirmed yet. The bulls need to see a weekly trend change in order to confirm the monthly higher low.