$8,500? Bitcoin Eyes Gains with Key Support at $7,900

Bitcoin remains in a bullish territory for now and is looking at further gains, though a pullback is possible if support at $7,900 is breached, according to technical studies.

The cryptocurrency's first attempt to scale the long-term descending trendline failed on Monday and prices fell below $8,000 as expected at 12:00 UTC. It's worth noting that the Bollinger bands show the volatility dropped after BTC dipped below the psychological mark, likely signaling indecision among the bears.

As a result, it is not surprising the dip below $8,000 was short-lived.

As of writing, BTC is changing hands at $8,145 on Bitfinex, largely unchanged on a 24-hour basis, but could soon report further gains as the hourly Bollinger bands indicate scope for a retest of $8,400-$8,500.

The Bollinger bands narrowed after the dip below $8,000, indicating the low volatility period - popularly known as a Bollinger band squeeze.

A failure to capitalize on the bullish Bollinger breakout could yield a drop below $7,900.

Only a daily close below $7,510 would abort the bullish view.

A dip to $7,690 will likely find bids as the short-term momentum studies are biased bullish.

On the downside, a move below $7,900 could yield a fruther drop to $7,690.

A daily close below $7,510 would signal the rally from the April 1 low of $6,425 has ended.