Bitcoin Might Have Area to Run Prior Downtrend Continues

After plummeting below $ 8,000 overnight, Bitcoin bulls were able to boost the encryption a bit higher, showing signs that the bulls are not ready to let the cryptocurrency fall lower in the short term. That could mean that the bulls will gain greater strength in the short term that could help boost BTC higher.

Analysts point out that Bitcoin is likely to have more space to run in the short term, but it is important to keep in mind that a strong level of resistance that exists slightly above the current Bitcoin price could stop this recovery and force BTC to extend its recent downtrend.

Bitcoin rises from daily lows while bulls try to trigger a rally

At the time of writing, Bitcoin is trading at just under 1% at its current price of $ 8,090. Which marks an increase from its recent lows of $ 7,900. That set yesterday when cryptography lost the support it had previously built at $ 8,000.

Today's rebound pales even compared to what was seen earlier this week. When Bitcoin reached highs of just under $ 9,000 before finding a significant resistance that made it stagger, and the lowest highs that BTC has been set over time since this fleeting rally can point to an underlying weakness among cryptocurrency bulls.

Bitcoin has established the upper region of $ 8,000 as support in recent weeks. Which were previously a resistance level that formed when BTC was trapped below this level overnight?

Big Chonis, a popular cryptocurrency analyst on Twitter, talked about this in a recent tweet, saying:

"$ BTC: the previous resistance now acts as support … # bitcoin," he said while pointing to the chart below.

Analyst: BTC may have more space to run before the downtrend continues

In the short term, analysts point out that Bitcoin can further extend its upward momentum before reaching its current resistance level. That will likely stop its recovery and lead it to incur a greater disadvantage.

Big Chonis also talked about this resistance level in a recent tweet, pointing out in his chart that the resistance level currently stands at around $ 8,200. which could be where BTC increases before revising its range lows in the region over $ 7,000.

"$ BTC: a small margin to test this line of constant resistance in the 6-hour #bitcoin chart," he said.
The next few hours can confirm the previous technical analysis, which may mean that Bitcoin will run even more before continuing its recently incurred downtrend and set new lows in several months.