Bitcoin is back on a selling mode after surging all the way from $8800 to $9250 (Bitfinex) yesterday. Now, the price has rolled back to the $8800, where BTC held as support since November 8. The latest bearish actions have brought the market down by -0.62% overnight as the market cap drops below $160 billion. However, Bitcoin may create an uglier scenario if the $8600 support breaks.
Bitcoin (BTC) Price Analysis: 4H Chart – Bearish
Key resistance levels: $9000, $9128, $9250
Key support levels: $8600, $8400, $8200
After spiking seeing a sharp rise from $8800, Bitcoin was unable to continue buying pressure to the channel’s resistance at $9400, although the price managed to touch $9250 before it was rejected. The price has dropped back beneath $9000 and BTC is now targeting a channel’s lower boundary at $8500 before we can see an upward correction. For now, key resistance holds at $9000 and potentially $9128 and $9250 resistance.
If the channel’s lower boundary fails to act as a support for Bitcoin on the 4-hour chart, a price break is likely to play out. Below the channel, immediate support lies at $8200 and $8000. However, BTC saw a sharp fall after testing the yellow diagonal resistance on the RSI 55. The MACD has continued to show that the bears are dominant at the moment.
Bitcoin (BTC) Price Analysis: Hourly Chart – Bearish
Prior to the last 24-hours price action, Bitcoin is now shaping inside a descending channel which is slowly forming since November 4. BTC sharply reversed after locating resistance on the channel’s upper boundary. Currently, the price is waiting at $8800 but we can expect the next selling pressure to reach the $8700 and $8600 support to meet the channel’s lower boundary.
However, Bitcoin seemed to have found support on the lower band of the RSI following the rejection at the upper band. If the RSI 30 can bolster, we can expect a rebound to $900 and $9128 resistance. Looking at the bearish setup, the market is more likely to reach the $8600 support before rebounding. As we can see, the MACD is still suggesting that the bears are present.
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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.