After locating support around $8800 for over two days, Bitcoin now saw a sudden price increase to $9250 on Bitfinex – amounting to a +5% gains under 15 minutes of trading. The surge is making BTC trade at around $9025 at the moment. Due to the latest positive move, Bitcoin’s market cap is now valued at $162.9 billion with a trading volume of about $19.5 billion.
Bitcoin (BTC) Price Analysis: 4H Chart – Bearish
Key resistance levels: $9400, $9655, $9955
Key support levels: $8800, $8600, $8400
For the past few days now, Bitcoin is caught in a descending channel pattern on the 4-hour chart. On November 8, the market found support at the lower boundary of the channel, which appeared to have caused the current rebound to $9200 – although the buyers are now targeting the channel’s resistance at $9400. Meanwhile, Bitcoin may rise to $9655 and $9955 if the channel breaks up.
The RSI is currently attempting a break above the yellow diagonal resistance line but it appeared the 50 level is acting strong. However, the MACD shows that the BTC/USD pair remains under a bearish radar. If the price closes below the $9000 today, we may resume selling pressure as the next support could underways at $8800, $8600 and $8400. Nevertheless, Bitcoin is still bearish on the 4-hour time frame.
Bitcoin (BTC) Price Analysis: Hourly Chart – Bullish
Bitcoin has seen a triangle breakout on the hourly chart, although we may need to wait for a significant-close above the $9000 before initiating buy. Before the current surge, Bitcoin was trading at a low of $8800 a few minutes ago but has now touched $9250 within a blink of an eye.
As of now, the RSI has shown a bullish sign but the MACD is yet to produce a bullish crossover which is important to confirm a strong buy to $9200, $9400 and $9600 resistance. However, a false breakout could lead to a bullish trap as the Bitcoin may roll back to $8900 – $8800 support zones. If the BTC price further drives low, it could make the market to retest the $8700 – the November 8 low.
BITCOIN BUY SIGNAL
Buy Entry: $9047
Michael Fasogbon is a professional Forex trader and cryptocurrency technical analyst with over five years of trading experience. Years back, he became passionate about blockchain technology and cryptocurrency through his sister and has since been following the market wave.