But Is Bitcoin Ready to Retest $8,000?

Bitcoin price slowed down as it met resistance at $7,800 and was unable to set a higher high above $8,000.

Ultimately, Bitcoin price remains trapped below the long term descending trendline and since Jun.

26 there is a clear pattern of price running up to the trendline, rejecting and falling into another phase of lower highs.

The situation has been less than ideal for perma-bulls who are lured into each large price drop under the belief that either a bottom has been found or the most recent drop presents an opportunity to open a low leveraged long position.

The Crypto Fear & Greed Index reading is back to "Extreme Fear." Given that investors perceive the indicator as a counter trading signal, some will look at Bitcoin's current price action as another opportunity to accumulate or at least open long positions.

Risk-averse investors will likely interpret the reading as a further warning that Bitcoin price could fall to new multi-month lows if it fails to hold $7,000.

The current momentum leaves traders wanting to see more volume and range in Bitcon's price action as it has been unable to hold onto gains or sustain above the 12-period EMA.Currently, purchasing volume is rising and if the price can push above the Bollinger Band moving average, Bitcoin could rise to $7,976.

As observed on the daily chart and mentioned earlier, the MACD histogram continues to gain momentum but more purchasing volume will be required to push Bitcoin price through $7,400-$7,600.

A drop below $7,080 could see the price sink to $6,800 and if buyers fail to buy into the dip the price could revisit the previous double bottom at $6,524.

So the price could quickly slice through this zone if BTC price drops below the descending channel support.