Bitcoin had another rough day today dropping below $8,000 and getting close to the important 12-period EMA support level on the monthly chart.
The daily chart had a few bounces but no followthrough so the RSI is still overextended. The bulls would like to set a higher low compared to $7,852. The daily EMA’s are still far away and the bulls would need to see many more days of sideways trading to catch up.
The 4-hour chart keeps showing the 12-period EMA rejecting the price over and over again. The bulls have not been able to break above the EMA convincingly. The bears have now confirmed a downtrend.
The weekly chart hasn’t changed much at this point as Bitcoin continues to trade around the lowest value of the recent crash.
The RSI is not overextended which means that the bears can still see further downside action. The other nearby support is $7444, a weekly support set in June.
Similarly, the monthly chart hasn’t changed much and everyone is watching that 12-period EMA. If the bulls are able to hold this EMA it would be a significant bullish sign. The monthly chart is still in a nice uptrend.
The recent crash doesn’t even look that big when looking at the monthly chart as consolidation was certainly expected.