Bitcoin back below $8000. Reached $9090 last week
The digital currency is in the $7450 to $8400 range
The price of bitcoin is trading back below the $8000 level today after a plunge that took the price from around $8500 to $7700 in the first few hours of trading today. Since then, the price is waffling mostly below the natural $8000 level.
The move today brings the digital currency back into a $7450 to $8400 range. From May 13 to May 27, the price traded 12 of 14 days in that range (there were two days when the price traded below the $7450 low). The 100 hour MA is at $8456 and moving lower. That should be a risk/bias defining level now for the currency. Move above, and this tumble is just a normal correction.
On the downside, should the price be able to stay below the $8000 level, I would expect buyers near that $7450 low ($7500 sounds like a nice round level to buy against). By the way, the 38.2% of the move up from the April 26th low comes in at $7513.49. That increases the areas importance IF there is a dip.
Bulls in Bitcoin, can call these dips as opportunities to load up and also necessary evils if the price is to go higher and higher and higher. They need the naysayers to get offsides and be forced to cover on the squeezes higher.
Whether it pans out that way or not, I don't know, but what I do know is if the $7500 area holds, the bulls are still more in control, and a break of the 100 and 200 hour MAs above (blue and green lines) would also be good for the buyers/bulls. If broken the $9090 high from last week would be on traders radars as the next key upside target.