We mentioned a possible rebound for Bitcoin earlier today, which has eventually played out to the upside. The recovery was quite quick with a $600 add up with the last 8-hours of trading. Compared to about 10% loss a few hours ago, Bitcoin has now seen a correction of 8% gain, bringing the market back above the $7000. BTC is currently priced at $7200 after dropping a bit from a daily high of $7346. However, the market may print a new daily high if the price can surpass $7400 resistance.
Bitcoin (BTC) Price Analysis: Hourly Chart – Bullish
Key resistance levels: $7400, $7600
Key support levels: $7000, $6800
Over the last few hours, Bitcoin has managed to rebound at $6600 – a current daily low for the market. The rebound has resulted in a decent price increase to $7346, where BTC is currently holding resistance. Meanwhile, the break above the yellow diagonal resistance ($7000) is a short-term bullish move which is now halted at the white horizontal resistance at $7400.
If the buyers can surpass $7400, Bitcoin could hit $8000 in no time but $7600 is the closest resistance to watch out for. On the other hand, BTC could retrace back to $7000 and potentially $6800 support to refuel an upswing. However, the RSI has switched back to bullish zone to reveal the latest gain in the market. The MACD is now facing up but yet to crossover. A strong buying pressure can be expected if the hourly MACD produces a bullish cross signal.
Bitcoin (BTC) Price Analysis: 15M Chart – Bullish
The recent price action is making Bitcoin to follow a bullish sentiment on the 15-minutes time frame after rising above the yellow diagonal resistance line and most especially climbing back above the $7000. Not just that, Bitcoin almost touched $7400 on the day before dropping to where BTC is currently priced at $7242. A further drop could pull the market back to $7100 support, followed by $7000 and possibly $6900.
Looking at the technical indicators, we can see that the bullish momentum is weakening on the MACD – a cross-down might result in a quick pullback in the market. Conversely, the RSI has dropped slightly from the overbought territories due to the recent rejection at $7346. If BTC can successfully manoeuvre the $7400 resistance, $7500 and $7600 are the next key resistance to look out for.
BITCOIN BUY SIGNAL
Buy Entry: $7252
TP: $7400 / $7500
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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.