According to the price analysis by Peter Smith, a financial analyst at dagx.live crypto trading platform, after the recent fall, the BTC/USD pair has been finding support close to the critical support of $7,337.78, which is the 61.8% retracement of the rally from the yearly lows of $3,236.09. Though deep, a 61.8% Fibonacci retracement does not break the uptrend. So, as long as the price remains above this level, the possibility of the resumption of the uptrend remains.
The first sign of strength will be if the bulls push the price above the downsloping flag and the 20-day EMA. This will indicate that the bulls are using lower levels to accumulate. Above this, the next resistance is likely to be at the 50-day SMA and above it at the downtrend line. Either of these levels can act as a roadblock for the up-move, but if the bulls can push the price above the downtrend line, a resumption of the uptrend is likely.
Conversely, if the bears sink the pair below $7,337.78, it is likely to trigger several stop losses. The next support on the downside is $6,933.90 and below that $5,533.90, which is the 78.60% Fibonacci retracement of the rally. However, Smith gives it a low probability of occurring. Therefore, aggressive traders can hold their long positions with the stops at $7,700.