The price of Bitcoin (BTCUSD) has broken below the 8289 key price level, after flirting around it for several days. Intraday bias continues to remain bearish on the lack of bullish triggers, after the pair has traded in a tight range throughout the week.
The price activity is seen extending lower in a gradual fashion, contained within the confines of a down channel. Despite the drop, volatility on Bitcoin continues to remain low.
Price is currently trading at 7938. BTCUSD is gradually dipping towards the near-term support seen at 7707, which is where price candles formed lows on May 26, June 30 and October 7. This area is therefore going to be the immediate support to the downtrending price action.
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Price needs to break below 7707 to open the door for further descent towards 6850 (May 12 lows), which is also the 23.6% Fibonacci retracement level. More downward pressure could take price below this area to target 5850, which is the major support before a huge cascade down to 2019 lows.
However, if price holds at 7707 as it has done twice in the last three months, then we may see a bounce which could retest 8289 in a repeat of the price move of Sept 30 and October 10.