Bitcoin may continue to fall towards $8 500

Last week, bitcoin formed a small bearish candle with wicks on both sides. This is the third bearish weekly candle after a rollback of quotations from the highs around $10 380 1 June, which may signal the loss of the recent uptrend.

Weekly close

After the formation of the «falling stars» for the week of June 8, the chart of bitcoin appeared three small bearish candles. The figure of the «shooting star» is a negative signal, especially after the climb, and three consecutive bearish candles only confirm the worsening prospects for the main digital currency.

Moreover, the quotations follow the line of a long-term declining resistance from December 2017, which has already provoked three rollback token. Also, the price rebounded from the level of $10 500, the result on the weekly RSI have a bearish divergence.

Even if in the near future bitcoin will rebound and form a long upper wick, in the end, quotes will probably fall towards the level of $7,000.

Minor resistance

After reaching a high of $9 778 22 June, when bitcoin started falling and continued for five days, on 27 June the price reached a low of $835 8, which fits into the pattern of falling highs, which is formed from the beginning of the current month.

The most probable scenario is retest of minor resistance $9 300, which also passes the 0.5% Fibonacci correction relative to the bearish move. Then bitcoin will likely continue to fall in the direction of the minimum range of $8 500, which price is not touched since may 13.

In support of this scenario, and say short-term charts. This is for several reasons:

First, during the formation of the long lower wick on 27 June was recorded higher trading volumes, which is a sign of a strong pressure from buyers. Secondly, bitcoin confirmed the status of the support of $9 050, which again should limit potential sales.

If the main cryptocurrency will break through the descending resistance, where price follows from 25 June, it will mark the beginning of a modest recovery towards the above resistance near $9 300.


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