From $9200, Bitcoin has established new support at $8600 about six hours following a -2.43% price loss at the moment. The $800 price cut has driven Bitcoin all the way to the channel’s support on the hourly chart. Meanwhile, on the daily chart, BTC is currently holding support on the channel’s resistance. All in all, the $8600 has halted the latest bearish swing. Rebound is likely if the above price can hold firmly.
Bitcoin (BTC) Price Analysis: Daily Chart – Bearish
Key resistance levels: $9000, $9400, $9994
Key support levels: $8600, $8300, $8000
Following our previous crypto trading signals, Bitcoin has now found support on the grey horizontal support at $8600 along with the channel’s resistance which has been suppressing selling pressure since late November. If the $8600 support acts strong, BTC is likely to retrace back to $9000 and $9400 – where the primary cryptocurrency struggled to surpass throughout last week.
If the intraday traders can reclaim the $9400 resistance, $9994 would come into play. However, there’s no certainty that the current support will hold. In case a break occurs, Bitcoin may locate support on the grey ascending trend line but $8300 and $8000 may be encountered. Currently, the RSI is on the downside due to the past 15 days of decline. Bullish continuation is likely if the RSI 40 can provide a rebound. On the MACD, the bulls are dominant but might lose control if a bearish cross signals.
Bitcoin (BTC) Price Analysis: Hourly Chart – Bearish
As predicted earlier today on our crypto trading signals, Bitcoin has eventually fallen to the channel’s lower boundary but has seen a quick recovery back above the grey horizontal support line. BTC is now priced at around $8748. Following the channel formation, Bitcoin is preparing for another upward move. We can see that the market is undergoing consolidation. However, $8900, $9000 and $9125 resistance is likely to play out concurrently.
At the moment, Bitcoin is sitting on the RSI 30. In the opposite direction, Bitcoin may extend its bearishness if the channel’s lower boundary fails to function as support. Nevertheless, Bitcoin might need to break the $8600 before we can see a new low at $8400 and $8200 on the hourly chart. The MACD has shown that the bearish bias is not yet over.
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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.