Bitcoin’s volatility has continued to expand downward after losing the $9000 support (now resistance) again. Since the weekly opening, the price has been struggling below this support a bearish action continues. Yesterday, Bitcoin made a new weekly low at around the $8600 but has managed to recover back to $8760 – where BTC is currently changing hands. However, we may close the weekly trade at $8000 if the bears remain in the market. Nonetheless, $9000 is an important resistance for the next bullish impulsive.
Bitcoin (BTC) Price Analysis: Daily Chart – Bearish
Key resistance levels: $9000, $9995, $10350
Key support levels: $8600, $8300, $8000
On the daily chart, Bitcoin is still sitting on the grey horizontal support at $8600 which at the same time makes the market to retest the channel’s resistance. If this support can hold well, we should expect an insane price increase in not time, although the $9000, $9995 and $10350 resistances are likely to play out.
Interestingly, the RSI has suggested a bullish divergence for a while, now looking for a level on the yellow diagonal support. Also, the MACD has signalled a crossover but appears a bit weak at the moment. Should the $8600 fail to contain bearish pressure; Bitcoin may plunge to $8300 and $8000 within a blink of an eye.
Bitcoin (BTC) Price Analysis: 4H Chart – Bearish
While the short-term market continues to show a sign of a bearish bias, Bitcoin is yet to find strong support for a bullish move. As appeared on the chart, BTC has extended its bearishness to $8600 over the last 24-hours of trading, following a quick price rejection at $8900. If the bearish pressure is sustained throughout this week, Bitcoin may further find a bottom at $8400, $8200 and $8000.
From all indication, the MACD revealed that the market remains under bearish control. Additionally, the RSI is showing a sign of weakness due to the recent price drop. We can expect a positive move if the buyers can regroup well. In view of that, the $9000, $9200 and $9400 resistance would be the next buying target for the bulls.
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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.