Will Bitcoin Confirm a Lower Low?

BTC/USD traded slightly lower today after it hit resistance at 8140 yesterday. Overall, the crypto has been printing lower lows and lower highs below a tentative downside resistance line since February 13^th. Thus, we would consider the short-term outlook to be negative.

If the bears are willing to stay behind the steering wheel and push below Monday’s low of 7600, this would confirm a forthcoming lower low on the 4-hour chart and may initially target the 7385 zone, marked by the inside swing highs of December 30^th and January 3^rd. Another dip, below 7385 could carry larger bearish implications and perhaps pave the way towards the 6830 area, defined as a support by the lows of January 2^nd and 3^rd. If the bears are not willing to stop there either, we may then see them putting the 6500 hurdle on their radars. That barrier provided decent support on November 25^th and December 17^th.

Shifting attention to our short-term oscillators, we see that the RSI, although…