Bitcoin dips to test support: Will it hold?

The Bitcoin price has been steadily losing ground since making the last local high at $82,300. Currently at $78,400, the $BTC price could be heading back to the bottom of a channel at $77K, or perhaps to strong support at $76K. If these don’t hold, $73K comes into play.

Retest of the channel bottom, or breakdown?

Source: TradingView

The 4-hour chart shows the slightly upsloping channel that the $BTC price has been navigating within for the last couple of weeks or so. After three touches to the top of the channel, it may be that the price comes down for an extra touch of the bottom of the channel now. After this, it remains to be seen whether there will be a bounce back to the top of the channel, or if the price will fall through the bottom of the channel?

If the $BTC price does break down out of the channel, the first level of support is at $76K, which is a good one. However, if the measured move out of the channel is completed, this could take the price all the way down to the low $70K region. 

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