Bitcoin has been under a lot of bearish pressure over the last few days, making the price to now trade near the $8600 support zones. It may become devastating if BTC price drops below the current support as $8000 could play out in no time. But if the buyers can regroup well, Bitcoin may reclaim the near resistance at $8880. Currently, the entire market cap has dropped below $240 billion compared to when it was trading above it yesterday. This shows that more bearish play may be at hand.
Bitcoin (BTC) Price Analysis: Daily Chart – Bearish
Key resistance levels: $8880, $9000
Key support levels: $8300, $8000
Looking at the daily chart, Bitcoin has continued to float on the $8600 support over two days. If the support breaks, the closest support to watch out for is the $8300 and $8000. There’s a higher chance for that as long as the bears remain in the market. Meanwhile, the weekly short opening has kept BTC price in an ugly scenario. We can see that the RSI has dropped well below the 50 levels.
Conversely, the MACD is showing a weakening moment but has remained in the positive zone. As it is now, it may be difficult for the bulls to regain momentum. But if we can have a daily close above the $8880 resistance, the bulls hope may be rekindled as $9000 resistance would be the next buying target. Once we climb back above the mention supports, Bitcoin should be ready for the next bullish rally.
Bitcoin (BTC) Price Analysis: 4H Chart – Bearish
Since yesterday, Bitcoin reached a fractal level for a breakout on the 4-hour chart but has been keeping us in suspense against the next major move. From a technical standpoint, a big shock-wave is lurking around the corner. For a down surge, immediate support lies at $8400, $8200 and $8000. This could make the technical indicators to slip their bearish zone the more.
If an upsurge occurs, Bitcoin is most likely to spike to the previous high at $10350. However, BTC needs to reclaim the $8800, $8880 and $9000 resistance before we can consider a breakout. Looking at the RSI indicator, Bitcoin is climbing slowly to signal a bullish divergence, although still struggling below the 50 levels. Inversely, the MACD is negative but keeping a sideways movement to reveal the recent squeeze in the market.
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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.