After three days of trading in a tightening range Bitcoin cost (BTC) dropped below $viii,300, stopping at $8,264 which is slightly beneath the $8,300 support and the 200-daily moving average (DMA) at $8,200.

Earlier in the 24-hour interval John Bollinger, the creator of the popular Bollinger Bands indicator, tweeted that the contempo pullback should not alarm investors. Bollinger said:

"This is a 'logical place' for $btcusd to discover support, a pullback to a breakout level and the heart BB."

Cryptocurrency market weekly overview

Cryptocurrency market weekly overview. Source: Coin360

As mentioned in the previous analysis, many traders still anticipate that the price volition drop to $8,200 where buyers looking to purchase the dip supposedly await. Currently, the book profile visible range (VPVR) shows a high book node at $viii,200 where the 200-DMA is located.

BTC USD daily chart

BTC USD daily chart. Source: TradingView

Based on the most contempo cost action, if Bitcoin price drops below $8,200 traders may look for a bounciness at the l-DMA at $8,000 and below this indicate, the toll could retrace to $vii,600 which is aligned with the lower band of the Bollinger Band indicator.

BTC USD daily chart

BTC USD daily chart. Source: TradingView

On the daily time frame, the moving boilerplate convergence divergence (MACD) has already crossed below the point line, printing a red (negative) candle on the histogram and the relative strength index (RSI) on the verge of dropping below 50. Trading volume has too tapered off and the Bollinger Bands remain wide, suggesting farther downside as the most likely scenario if the price drops beneath the 200-DMA.

In the shorter time frame, we can encounter that bulls have been fighting to hold the $8,300 support and the RSI and MACD are fast approaching oversold regions.

Traders looking to play an oversold bounce will be watching $8,100 where the former descending channel trendline resides. Below this is the 200-DMA which is centered between the 50% and 61.8% Fibonacci Retracement levels.

BTC USD 6-hour chart

BTC USD vi-hour chart. Source: TradingView

If an oversold bounce produces a stiff response that allows Bitcoin to reclaim the 50-EMA traders will watch to run into if $viii,500 presents resistance. In a higher place $8,500 it's possible that the loftier volume VPVR node at $viii,623 could function every bit a difficult level of resistance. To restore the uptrend, traders will need to push and hold Bitcoin toll to a higher place $8,800 and $9,134.

Bitcoin daily price chart

Bitcoin daily cost chart. Source: Coin360

The overall cryptocurrency market place cap now stands at $228.9 billion and Bitcoin's say-so charge per unit is at 63.3%. The majority of top-ten altcoins followed Bitcoin's price action with Bitcoin SV (BSV) tumbling 9.33%, Bitcoin Cash (BCH) seven.86% and Litecoin (LTC) 6.51%.

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