As of this writing, Bitcoin trades at around $7,900. The bears are in control and the descending channel (green lines) is still in effect. As previously mentioned, Bitcoin needed to break the $11,000 area with some authority and volume in order to break the descending channel and reach new highs. This has not occurred.
Instead, Bitcoin has failed to breakout and is trading within the channel range. This was also mentioned in previous posts. The low of the channel lies at around $7,300 which also coincides with previous support back in May and June. Violation of that $7,300 support area would signal a break down in price action.
Of note should be the size of volume on this latest move and that RSI is showing very oversold levels. Traders should note that that if a short term reversal doesn’t form, more downside pressure can be exerted.