The last two hours trading has set a little panic for Bitcoin’s traders after rising sharply to $8900 and at the same time fell to $8600 zones – where BTC is currently oscillating. The bulls are now trapped as it may be difficult for them to get out this mess unless Bitcoin revisits the $8900 zones. Looking at the current short-term bearish bias, the bulls would remain trapped if they fail to cut their losses.
Bitcoin (BTC) Price Analysis: 4H Chart – Bearish
Key resistance levels: $8900, $9000, $9125
Key support levels: $8600, $8400, $8100
Just a few minutes ago, Bitcoin tried to retrace back to the $9125 resistance but the bullish correction was halted at $8900 resistance and it has made the price of BTC to fall back below the $8700. Currently, the bears are eyeing the channel’s support at $8400 –where Bitcoin is likely to run a proper retracement. If the channel’s lower boundary fails to function as support, Bitcoin may slip to $8100 support, inside the descending channel that was formed in June.
Technically, Bitcoin is locating support on the RSI 30 level. If this mentioned level can provide a rebound for the market, we can expect the price to correct gains to $8900, $9000 and $9125 resistance. At the time of writing, BTC is showing weakness on the MACD as more heavy selling pressure is likely to occur in the coming hours.
Bitcoin (BTC) Price Analysis: Hourly Chart – Bearish
Looking at the last hourly pin-bar candle close, Bitcoin’s price may become devastating if the bearish signal eventually plays out. The market is now forming a bearish head and shoulder pattern as Bitcoin almost completes the right shoulder at $8600 support. This pattern formation could cause a heavy selling pressure if the neckline breaks. In no time, the $8400 and $8200 support may come into play.
As we can see, Bitcoin has turned away from the RSI 50, now facing the RSI 30. Should the price further drives lower, we may experience serious bearish actions. Additionally, the market has continued to follow a bearish scenario on the MACD. However, if the bulls can reinforce heavily, we can expect a little price gain to $8800 and $8900 on the right shoulder. A further price push may allow the bulls to test the $9000 once more.
BITCOIN SELL SIGNAL
Sell Entry: $8591
- Min Deposit
- Visit Broker
- Trade top Cryptos such as Bitcoin, Litecoin and Ethereum plus more
- Zero commissions and no bank fees on transactions
- Around the clock service with support in 14 languages
- Trusted provider
- Large amount of assets available
- Secure payment methods
- Award-winning Cryptocurrency trading platform
- 14 Cryptoassets available to invest in
- FCA & Cysec regulated
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.