The $7,600 level is also a crucial level for the bearish scenario. If the price of Bitcoin can’t hold the $7,600 level as support, the breakout to the upside can then be classified as a “fake-out,” possibly leading towards the continuation of the downward movements.
An example shows the big push towards $10,000 in October. The price of Bitcoin wasn’t able to find support after this push and started to accelerate to the downside, dropping even lower than the recent low.
Thus, if the price of Bitcoin can’t hold $7,600, the sentiment will then flip bearish and traders will see where the price of Bitcoin will find new support. In this case, acceleration to the downside would make me believe that $6,400 and even $5,600-5,800 could be tested as the next support levels.