Bitcoin has staged support on $7000 for a while now but it may become weak if a bearish play occurs again. While staying on a six-month low of $6600, BTC may reverse if the channel pattern on the daily chart continues to hold price actions. For now, the $7400 resistance is still holding buying pressure as strong bullish regroup could set a decent rally to $9000. However, the bearish sentiment remains valid on a long-term perspective.
Bitcoin (BTC) Price Analysis: Daily Chart – Bearish
Key resistance levels: $7400, $8000, $8800
Key support levels: $7000, $6800, $6600
The daily chart for Bitcoin has continued to keep a bearish formation over the past months. The descending channel has again provided support for BTC at the lower boundary. After bouncing from $6600 two days ago, the bullish swing was halted at $7400 resistance – an important level for reversal. A successful climb would bring us straight to $8000, followed by $8800.
The ongoing selling on the short-term could be reinforcement for a bullish setup. If Bitcoin goes by the technical indications, the market might still retest $7000 and $6800 once more before making a complete reversal. Otherwise, the six-month low could be revisited.
Bitcoin (BTC) Price Analysis: 15M Chart – Bearish
The 15-minutes time frame for Bitcoin shows that the price is flagging down in a channel boundary after climbing back above $7000 on November 25. We can see that BTC is currently consolidating at around $7100 for a while now. A downward move could bottom Bitcoin on $7000 support.
On the other hand, an upward move could allow buying to the channel’s resistance at $7200. Meanwhile, the RSI is now testing the oversold level. A positive move is likely for the market if the oversold level bolster. But the MACD has slightly crossed back to the negative which might cause more declines if it continues to fall.
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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.