Local corrective pullback of bitcoin market from the support level $7700-$7800

In the articles of the previous week, we noted that the Bitcoin market approached a very important level - the level of support area in the region of $7700-$7800. At that mark, we expected a slowdown in the downward momentum and a kind of interception of the initiative by the Bitcoin. Looks like this is what exactly happened on the market - for the last 24 hours, Bitcoin moved to some gains, while still restrained and cautious. However, the positive factor is the fact that the bulls attacked and seized the initiative. Shortly before the start of US trading Monday session, the first cryptocurrency traded at $8475, showing a weak but still positive gain of almost 2% in the last 24 hours. Market capitalization rose to a level of 387 billion dollars, which is almost $7 billion more than Friday's level.

What is behind this rebound? Technical situation or some fundamental factors? Most likely the first scenario, so in recent days there was no significant positive fundamental information, and the sellers hastened to fix profits from the latest shorts from the levels of $9650 and lower. Fundamentally and technically, the situation on the market has not changed, and we are still in the mid-term lateral consolidation movement.

Technically, it is very unlikely that the market will be able to form any sustained upward pullback in the days ahead, longs at current levels are dangerous and it is necessary to wait for the situation to develop for any further action.

The relative strength index RSI is at 53 level, which means a neutral zone. Moving averages are still heading downwards - 100th moving. Some support for the market is provided by the 200th moving and a strong support level at $7700-$7800. In order to form an application for further growth bulls should close Monday session above the level of $8670. However, it does not seem that bulls have such forces at the beginning of the American session. However, everything can happen in the market, especially in the cryptocurrency market. Let's see how events will develop - this is just the beginning of the week. Our recommendations - we remain out the market and look forward to the development of the situation.

FortFS