Bitcoin has extended its bearishness to a new week, although the market has been stable since the price fell to $8400 during last week trading. Currently, Bitcoin is leaning on the $8400 support. If this support can hold well, we should expect a positive move in the coming days. As of now, BTC is consolidating on the hourly chart.
Bitcoin (BTC) Price Analysis: Daily Chart – Bearish
Key resistance levels: $8600, $8800, $9000,
Key support levels: $8300, $8200, $8100
Since Bitcoin broke out of the wedge in late October, the price has substantially decreased due to the selling pressure in the market. For the past three days now, the price of BTC has been trading around the $8500, keeping sellers on hold for a while. Similarly, the sellers seem to be weak at the moment. If the bulls can act upon this, Bitcoin’s price could regain strength.
The nearest resistance to expect the price is $8800, followed by $9000 before we can see a nice growth. On the other hand, a drive beneath the $8400 may allow bearish extension to $8250 and $8100 support. Now, the RSI is well below the 50 levels to reveal that Bitcoin is losing strength, although the MACD is sustaining bulls’ hope as it stays positive.
Bitcoin (BTC) Price Analysis: 4H Chart – Bearish
Bitcoin’s volatility is subdued with choppy price actions on the 4-hour chart. The market is now trading in a tight area which suggests a potential surge lurking around the corner. Taking a look at the RSI indicator, we can see that Bitcoin has been supported by the RSI 30 level since November 8.
If the RSI can continue to bolster, we can expect a bullish move to $8600, $8800 and $9000 resistance. But on the MACD, Bitcoin is still looking negative. Should $8400 support breaks, BTC may drop beneath the yellow horizontal support at $8300, $8200 and $8100. As of now, Bitcoin appeared fragile as big shock-wave is around the corner.
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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.