Following the quick recovery at $8600, Bitcoin has been consolidation around the $8750 since yesterday, suggesting a potential retracement for a healthier move. Currently, BTC is recording a loss of -0.66% overnight. However, we can expect a correction to $9125 shortly before Bitcoin resumes bearish swing.
Bitcoin (BTC) Price Analysis: 4H Chart – Bearish
Key resistance levels: $8880, $9000, $9200
Key support levels: $8600, $8400, $8100
It appeared Bitcoin is forming a bull flag on the 4-hour time frame, although the value of the cryptocurrency has continued to depreciate for a while. While relying on the channel’s support at $8600, Bitcoin is currently gearing for a little retracement at $9000 and $9200 but may encounter minor resistance at $8880. On the RSI, Bitcoin is slowly regaining strength as we may see a nice build-up in the next few hours, possibly towards the New York session.
Meanwhile, the MACD indicator is also closing the zero level but the market is still reflected in a bearish zone. That could rekindle a little hope for the traders to open more short position as this is likely to bring the price of BTC as low as $8600, $8400 and $8100 in the next few days.
Bitcoin (BTC) Price Analysis: Hourly Chart – Bearish
On the hourly time frame, Bitcoin is now gathering momentum for a positive move. As indicated on the price chart, BTC is looking for small correction of about $350 price increase to meet the channel’s upper boundary. However, if a channel break-up occurs, we can expect a surge to $9600 and $9995 in no time as close resistance lies at $8880, $9000 and $9125.
As appeared on the technical indicators, Bitcoin is testing the RSI 50 after mounting support on the lower band. While negative, the bulls are regrouping on the MACD. If the bullish signal turns false, the bears may reinforce pressure to reclaim the $8600 before supplying further to new support at $8500 and $8400. Regardless of the market sentiment, Bitcoin remains in a short-term bearish bias.
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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.