Bitcoin (BTC) Price Analysis – Bitcoin Could Bottom At $7100 If This Bearish Pattern Plays Out

Bitcoin (BTC) Price Analysis – Bitcoin Could Bottom At $7100 If This Bearish Pattern Plays Out

Following the latest decline in the market, Bitcoin is currently correcting loss of -2.84% and causing the BTC price to drop at $7300 at the moment. As of now, the entire crypto market cap is below $200 billion with BTC dominance of 66.8%. The downward price shift might become strong if the Bitcoin dips below the $7000 price zones.

Bitcoin (BTC) Price Analysis: 4H Chart – Bearish

Key resistance levels: $7600, $7755, $7890
Key support levels: $7167, $6880, $6750

Contrary to our last crypto trading signals on Bitcoin, the price is slowly breaking below the triangle pattern on the 4-hour time frame. However, the break is not clear for now as a notable price drop is expected to occur before we can validate a strong sell.

Nonetheless, the potential supports for the bears lie at $7167, followed by $6880 and $6750. The MACD is currently attempting a crossover to the negative zones as Bitcoin’s price could witness a lot of bearish pressure.

BTCUSD, 4H Chart – December 10

Meanwhile, the RSI is likely to make bottom on the oversold level. If the market can hold support at the $7300 price zones, an upward trend is likely as $7600, $7755 and $7890 resistance could come into play. But as it appeared now, the BTC bears are looking for lower price levels.

Bitcoin (BTC) Price Analysis: Hourly Chart – Bearish

The last 24-hours price action has brought Bitcoin’s trading to the lower boundary of the channel that is forming since December 7. In fact, the market is almost breaching down the descending channel pattern. It may become significant if BTC drops to $7200 and $7100 support, or even $7000.

But as it stands now, the sellers seem to be weak at the moment. Should the buyers act upon this and manages to push the price back to $7400; Bitcoin may reclaim $7500 resistance.

BTCUSD, Hourly Chart – December 10

Pushing the price above the falling channel could allow more buying at $7600 and $7700. But looking at the current hourly MACD, the market is under the bear radar as selling pressure could be underway. Still, Bitcoin is still relying on the RSI oversold level. At the moment, a break or a bounce is imminent for Bitcoin.

BITCOIN SELL SIGNAL

Sell Entry: $7311
TP: $7167
SL: 7409

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Author : Michael Fasogbon

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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.