Key Technical Indicator Signals Bitcoin may soon revise $ 7,300

Bitcoin's price has been able to stabilize after sustaining a significant influx of sales pressure yesterday that sent what fell below the previous $ 9,000 range, and it appears that bulls has formed $ 8,800 dollars as a support level that could strengthen BTC's near-term pricing.

It is important to note that despite BTC finding some support around its current price level, a technical indicator may point to the possibility that the crypto will soon erase all recent gains and plunge to $ 7,300 – which is where it traded in the previous meteoric rally that was held late last month.

Bitcoin Stabilizes After Recent Fall

At the time of writing, Bitcoin is trading marginally down to its current price of $ 8,800, marking a steep backlash from multi-day highs of nearly $ 9,500 set earlier this week just as before cryptos plunged below $ 9,000.

This latest move came after an extended period of consolidation between $ 9,000 and $ 9,500, which had seemed to be a strong trading interval that many analysts thought would hold strong in the near future.

Although BTC lost its support of $ 9,000, it has jumped to $ 8,800 on several occasions over the past couple of days, signaling that this will be the next major short-term support level that strengthens the cryptocurrency's price action over of the coming days and weeks.

Indicator spells trouble for BTC's near-term price action [1[ads1]9659004] One key technical indicator that has an overview of accuracy in predicting short-term BTC trends may spell trouble for the cryptocurrency's price action in the short term, as it may signal that it will soon recover against $ 7,300. [19659002] This indicator – called the GTI Vera Convergence Divergence Indicator – shows that Bitcoin is currently on the verge of moving its recently established trend into a downtrend, which means further losses may be imminent.

This indicator was discussed in a recent Bloomberg report, in which the author notes that if this trend change occurs, the largest digital currency could retry the low levels seen before the lush run after comments from China's President Xi Jinping in October . "

The report further notes that the" GTI Vera Convergence Divergence Indicator shows a narrowing gap between the signal and vera lines, suggesting that a trend change may be on the horizon. ”

How Bitcoin responds to its near-term support at $ 8,800 is likely to provide invaluable insight into the direction in which markets are moving.

  Featured image from Shutterstock.