Bitcoin Price Support at $7.8K Is Key

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.

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.

In the event that buyers continue to press the price higher, a move through $8,300 is required; and above this point, Bitcoin price is capped by the falling wedge descending trendline and the 50-day moving average, which has weighed on the price since Nov. 11.BTC USD daily MACD, RSI, and Stoch chart.

A bird's eye view of Bitcoin's price action on the daily chart shows that double bottoms have been a frequent occurrence often followed by price reversals.

In a newsletter published earlier in the week, crypto analyst Philip Swift suggested that Bitcoin remains in the early phase of a bull market and according to Swift, it is unlikely that the price will drop below $6,000.

Bearish scenarioBears foresee buyers failing to purchase a drop to the 61.8% Fibonacci retracement level at $7,845, after which Bitcoin price drops to the $7,500 support.

If this fails to hold, Bitcoin could complete a full retrace of the Oct. 25 42% rally to $7,400 which would form a double bottom where price could bounce.

This outcome seems unlikely, as the weekly chart volume profile visible range shows Bitcoin price supported from $8,250 to $7,900.

As mentioned earlier, Bitcoin trading volume needs to improve or bears are likely to continue pressing the price lower.