Bitcoin sellers have again failed to establish a foothold below support at $8,296. That level marks the 38.2% Fibo retracement of the upward trend from $6,853 to $9,188.
The digital currency had dropped to a low of $8,252 earlier today and is currently priced at $8,340 on Bitstamp.
What’s worth noting is that the sellers have failed to find a last moving below the key Fibo support for the third straight day.
Such type of price action (seller exhaustion around key support) is usually seen before a price bounce.
If prices rise above $8,360 in a convincing manner in the next few hours, a falling wedge breakout would be confirmed on the 4H chart.
That would imply an end of the pullback from $9,200 and a resumption of the upward move from lows below $6,800 observed earlier this month.
The immediate resistance is marked by the lower high at $8,530. A push beyond that would expose $8,750-$8,800 resistance range, above which the focus would shift to $9,000.
On the flip side, a daily close below $8,296 would suggest a continuation of the pullback from $9.200 and spent the doors to support at $7,870 (Nov. 29 high).