The latest surge has caused a lot of bearish pressure in the market, making Bitcoin’s price to plummet straight to $7500. As a result of this, Bitcoin saw a cut of about $680 its daily opening price, now trading at around $7660. We can expect the scenario to get uglier as $7300 is on sight.
Bitcoin (BTC) Price Analysis: Daily Chart – Bearish
Key resistance levels: $7800, $8000
Key support levels: $7500, $7300
The $8000 support is significantly breached as Bitcoin targets another key support at $7300. The colossal breakout was characterized by a strong bearish candle opening from $8113 to $7500 after crossing the white-dotted diagonal support. Meanwhile, the $7300 is key support where bearish pressure may hold for a while before breaking or bouncing. A break may lead Bitcoin to the bottom of the channel at $6500- where the rebound is likely.
However, if the $7300 support can hold, Bitcoin is expected to bounce back to the channel’s upper boundary, although retracement level lies at $7800 and $8000. Currently, Bitcoin is relying on the RSI 30 level as a break may cause a serious price drop. On the MACD, Bitcoin has slightly crossed to the negative to show that the bearish action is getting stronger
Bitcoin (BTC) Price Analysis: Hourly Chart – Bearish
On the hourly chart, Bitcoin has been witnessing a lot of selling pressure since the daily opening, which has made the bears continue to gain control of the market. BTC is currently supported by $7500 but small correction is likely before the bears resume pressure in the market. If we look at the RSI indicator, we can see that Bitcoin is extremely oversold.
Similarly, the price has reached the negative zones on the MACD, showing a weakening bearish momentum. Meanwhile, Bitcoin may face critical support at $7300 if the bearish pressure continues. Should the market gain a little recovery, we can expect near resistance at $7800 and $8000. But for now, it appeared that the bearish bias is still dominant.
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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.