Today is the third consecutive day that Bitcoin drops below $8000, however, again it seems that bears do not have enough strength to see any kind of continuation as Bitcoin is currently trading at $7920.
The 4-hour chart is currently showing a bear flag but this happened the last time too and bulls broke out of it. The bears are clearly still in control over the short term, however, strength seems to be fading away. These moves below $8000 should have been enough for the bears to see continuation.
The daily chart is clearly still in a downtrend as the bears are looking to break below $7762, the recent low. BTC is currently trading below both EMAs but the RSI is getting dangerously close to the overextended area.
This hasn’t changed the weekly chart, however, the current weekly bear flag will be nullified if the bears continue to trade sideways for too long. The 26-period EMA is close at $8687, a level that the bulls would love to break.
Similarly, the monthly chart hasn’t changed too much as the bulls are still waiting for confirmation from the weekly chart to be sure this is the bottom. Either way, most technical indicators are still signaling to buy for the long term. Moving Averages are showing a ‘strong buy’ and Oscillators a ‘buy’.