Bitcoin price chart analysis: Bulls must defend $8,700 support level

Bitcoin price chart analysis shows that a decline below the $8,700 could cause a decline in the BTC/USD pair towards the $7,000 level

Bitcoin came under pressure last week, following numerous failed attempts to overcome the psychological $10,000 level.

Bitcoin price chart analysis shows that bulls must defend the $8,700 level this week to avoid a sharper drop in the number one cryptocurrency.

Bitcoin medium-term price trend

Bitcoin reversed sharply from the $9,900 area last week, due to a combination of bearish fundamental news, and upside price exhaustion.

The upcoming trading week should be extremely important for the BTC/USD pair, considering last weeks bearish reversal and the upcoming monthly price close.

Bitcoin price chart analysisBitcoin price technical analysis shows that if price slips below the $8,700 level then the BTC/USD pair could sink towards the $7,000 level over the medium-term.

The daily time shows that a break of major trendline support will occur if price falls under the $8,700 support level.

A bearish reversal back inside a large falling price channel is also in play while price trades below the $9,200 resistance level.

Price stabilization back above the mentioned price channel could provoke another test back towards the $10,000 level.

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Bitcoin short-term price trend

Bitcoin price technical analysis shows that bulls remain in control while price trades above the $8,600 level.

Lower time frame analysis shows that sellers failed to invalidate a large head and shoulders pattern last week.

Bitcoin price chart analysisDue to last weeks bearish reversal the pattern is now back in focus. Sellers need to move price below the $8,500 level to activate the bearish pattern.

According to the size of the mentioned bearish pattern, the BTC/USD pair could fall towards the $7,000 level if the pattern is triggered. 

Traders should also note that bearish stochastic price divergence is still in place on the four-hour time frame, and is currently located around the $6,900 level.

Bitcoin technical summary

Bitcoin price chart technical analysis indicates that the cryptocurrency could suffer more losses if the $8,700 level is broken. Gains above the $9,200 may encourage technical buying interest.

Bitcoin to US Dollar
Daily change
Low: 17083.9
High: 17377.9
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