BTC/USD tumbled yesterday, breaking below the key support zone of 7725 and hitting support at around 7225. The dip below 7725 signaled the exit of the trendless mode the crypto has been trading since September 25th and may have turned the near-term outlook back to negative. Thus, for now, we will continue aiming for lower levels.
Having said that though, we see the case of a small recovery before the next negative leg, perhaps for the price to challenge the 7725 zone as a resistance this time. The bears may take charge again from near that zone and aim for another test near 7225. If they succeed in overcoming that hurdle, then we may see them pushing towards the 6855 area, marked as a support by the low of May 13th, and an intraday swing low formed on the 17th of that month.
Shifting attention to our short-term oscillators, we see that the RSI has bottomed within its below-30 territory and now appears ready to emerge above 30, while the MACD, although below both its zero and trigger lines, has slowed down. It could also bottom soon. These indicators add to our view that a corrective bounce may be looming before the sellers decide to shoot again.
On the upside, we would like to see a clear break above 8330 before we start examining whether the bulls are determined to make a come-back. Such a move could initially aim for the 8665 level, or the 8775 barrier, which is the high of October 11th. Another break, above 8775, may allow extensions towards the 9070 zone, defined by the low of July 28th.
