Doom or Double Bottom? — Bitcoin Price Support at $7.8K Is Key

Bitcoin’s (BTC) price action continues to be less than impressive unless one is a bear capitalizing on the current shorting opportunities.

Bulls pinned their hopes on BTC price breaking out of the falling wedge in a strong upside move since the consensus was that this particular pattern tends to produce bullish outcomes more often than not. This was not the case and Bitcoin price toppled below the descending trendline to $7,981.

Since reaching a dominance rate of 69.35% on Oct. 27, Bitcoin’s dominance rate has dropped to 65.9% and a growing number of traders appear to be shifting their attention to altcoins as many are pressing against their long-term descending trendlines and 200-day moving averages.

Crypto market data monthly view. Source: Coin360

Ultimately, the issue here seems to be a lack of interest manifesting in low trading volume.

Some crypto-Twitter analysts are now calling for Bitcoin price to drop to $6,000 and the most bearish among them have called for a revisit to the $3,000 range. Bitcoin’s current price action does not suggest a drop below $6,000 as a realistic short-term price estimate. But let’s have a look at the charts to see what clues they could provide.

BTC USD daily chart. Source: TradingView

Bitcoin’s nearest support below $8,000 is at $7,866, roughly $20 away from a golden pocket bounce off the 61.8% Fibonacci retracement level at $7,845. Currently, the $8,300 support has flipped to resistance, a point which also aligns with the Bollinger Band indicator moving average (yellow line) on the 6-hour chart.

BTC USD 6-hour chart. Source: TradingView

At the time of writing, buyers have pushed Bitcoin price to $8,232 on a low volume move and the MACD line of the moving average convergence divergence has curled up toward the signal line. Bulls may attempt to push the price higher but the current volume and relative strength index (RSI) reading below 30 dampen enthusiasm.

In the event that buyers continue to press the price higher, a…

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