Bitcoin has fallen to extreme lows this week, alongside the stock market. Fears over the coronavirus and a looming recession on the horizon have led to the year’s worst selloff.

However, this morning, a relief rally appeared to be in sight for bulls, however, shortly after Bitcoin breached back above $8,000, it was swiftly swatted down by bears, putting Bitcoin at risk of even deeper lows.

Bitcoin Can’t Hold $8,000 Just Weeks After Trading Above $10,000

Bitcoin is struggling to stay above $8,000, after just two weeks ago the asset was trading above the psychological level of $10,000.

The cryptocurrency had been up by over 50% year-to-date before growing fears over the rapid spread of the coronavirus caused widespread fears to spill into financial markets.

The stock market fell to set its worst losses since the last recession, and Bitcoin, a high-risk speculative asset has followed the stock market in plummeting at light speed.

Related Reading | The Fate of Bitcoin Rests On This Seven-Year Secular Bull Market Support

Overnight Sunday night and into Monday morning, Bitcoin set a low at $7,600, before bouncing.

The rally looked to have legs as this morning Bitcoin shot up by $200 to break cleanly above $8,000.

But shortly after the level was taken, bears rejected Bitcoin back down to $7700 where it is currently trading.

Given that the cryptocurrency is failing to hold a level that was bought up with fury just a month prior, suggests serious weakness in the crypto market.

But why was this level so strongly defended by bears? According to one crypto analyst, the rise this morning was a bearish retest, that failed to .

The recent price action suggests that Bitcoin is forming a parallel channel, much like it did throughout the end of February and into March.

Levels to Watch For Cryptocurrency Market Breakout or Further Breakdown

A breakout of this trading range will lead Bitcoin to either setting new lows, or finally getting a relief rally that is sustainable.

The top of the range is set around $8,100, with the bottom of it around $7,700. Either level being taken out with multiple high timeframe candle closes will confirm the direction in the short-term.

Related Reading | How Fear and Greed in the Crypto Market Can Lead To Incredible Profit

Bitcoin is currently resting on its “miner’s bottom” which has acted as a launchpad for significant bounces in the past. Will this happen once again and will Bitcoin take off on a new bull market just ahead of the upcoming halving this May, or is Bitcoin doomed in the face of a recession and the coronavirus – a potential black swan event?