Bitcoin (BTC) Price Analysis – Bitcoin Faces Critical Support Again After Faking Breakout – Undecided?

Bitcoin (BTC) Price Analysis – Bitcoin Faces Critical Support Again After Faking Breakout – Undecided?

Yesterday, Bitcoin’s price spiked up the $7300 resistance to $7465 on the day, but the market could not continue buying pressure. The surge was later followed by a dump to around $7200 – where BTC is trading up till now. However, a drop below $7000 may result in a massive sell-off as Bitcoin could roll back to the year-to-date low.

Bitcoin (BTC) Price Analysis: Daily Chart – Bearish

Key resistance levels: $7465, $7700, $7900
Key support levels: $7000, $6800, $6500

Bitcoin continues to trade above the $7000, following the December 18 recovery from $6500. Since the short-term buyers step back into the market, BTC has been struggling below $7900 resistance; especially the latest resistance that evolve around $7465. If the buyers can reclaim it, $7700 will be the next target.

BTCUSD, Daily Chart – December 27

Though, Bitcoin is relying on minor support of $7100 for the past 8 days. If this support breaks to $7000, we may see a quick sell-off to $6800 and $6500. Significantly, BTC is still finding it difficult to surpass the RSI 50. The MACD is also holding momentum below the zero levels. We can expect nice growth as soon as these indicators levels break.

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

Following yesterday’s rejection around $7400, Bitcoin is now facing the $7100 support again. The last 24-hours drops may become serious if BTC drives below the yellow horizontal support area on the 4-hours chart. In view of that, $7000 support may be exposed to a bearish threat, followed by $6800. However, the buyers are still defending their last defence line.

BTCUSD, 4H Chart – December 27

Another thing to look at here is the RSI, which is slowly turning downward to indicate a potential sell. The MACD is also attempting to cross to the negative zones, although the signal is not clear at the moment. If Bitcoin regains strength above the $7200 price zones, the $7465 resistance may be retested. A continuous increase would send price to $7700 and above. For now, Bitcoin is weak!

BITCOIN BUY SIGNAL

Buy Entry: $7200
TP: $7333
SL: $7147

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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.