We recently saw Bitcoin rebounded from $7600 to almost $9600. However, we noticed that this looked like an abc correction, with price respecting a previous resistance. These were signs that Bitcoin was still bearish despite a bounce.
- Note that the abc correction earlier stopped at a previous support as well as the 100-hour simple moving average.
- A bearish swing followed and price dipped to $6,000 before finding some meaningful support.
- Price is now back above $7000 at the start of the US trading session.
- Previously acting as support, the area around $8000 will now challenge price action as resistance.
- Also, the RSI will be around 60, and if the market is still bearish in the 1H chart, the 1H RSI should not push above 60 except very briefly.
- This means, if price pushes above 8150 and the RSI pushes above 60, even 70, we can start calling this $6000 as critical support. We might even rely on this as support the next time price approaches.
- But if price does not push above 8150 and the RSI holds mostly under 60, BTC/USD would maintain bearish momentum. In this scenario, I would have less confidence in the 6000 mark holding.