Bitcoin (BTC) Price Analysis: BTC Shows Weakness On Short-term, Can $7700 Provide a Strong Rebound?

Avatar
18 October 2019 | Updated: 18 October 2019

After mounting support at $7700, Bitcoin is now caught in a consolidation mode for the past three weeks, although the price was rejected at $8800 October 11. The slight drop below $8000 has made the bears turn at the $7700 support on a third attempt. Bitcoin should bounce back to $8600 if the bulls can defend the current support. Otherwise, the mid-term bearish scenario may continue.

Bitcoin (BTC) Price Analysis: 4H Chart – Neutral

Key resistance levels: $8000, $8270, $8453, $8650
Key support levels: $7733, $7500, $7300, $7000

Bitcoin is moving sideways on the hourly chart. The $8800 rejection has led the market into 7 days bearish action which has currently brought Bitcoin to $7900. Meanwhile, the $7700 price zones now correspond with the RSI 50 level, where Bitcoin currently held support.

BTCUSD, 4H Chart – October 18

We can expect a rise back above $8000 toward the channel’s resistance at $8270, $8453 and $8650 before a potential break-up. On the other hand, support is likely at $7500, $7300 and $7000 if the $7733 could not contain selling pressure. However, the MACD indicator shows that the bears are in play for now.

Bitcoin (BTC) Price Analysis: Hourly Chart – Bearish

The October 11 false breakout has led Bitcoin’s price in a downward range and at the same time shaping in a channel boundary. However, it’s important to note that the bears are becoming strong on a short-term move. Just a few hours ago, Bitcoin tested the channel’s support at $7800 and now waiting for a possible correction to $8100 resistance.

BTCUSD, Hourly Chart – October 18

As we can see, the RSI indicator is bolstered by the 30 level, although still weak at the moment. Similarly, the crypto trading signals a bearish cross on the MACD indicator which may cause Bitcoin to keep falling if the signals play out.

On the downside, $7600, $7400, $7200 and $7000 may be explored. On the upside, $8200, $8400 and $8600 may play out if a bullish surge occurs. For now, BTC is currently weak on the hourly time frame.

BITCOIN SELL SIGNAL

Buy Entry: $7870
TP: $8091 / $8270
SL: $7700

  • Broker
  • Benefits
  • Min Deposit
  • Score
  • Visit Broker
  • Fund Moneta Markets account with a minimum of $250
  • Opt in using the form to claim your 50% deposit bonus
$250 Min Deposit
9
  • 20% welcome bonus of upto $10,000
  • Minimum deposit $100
  • Verify your account before the bonus is credited
$100 Min Deposit
9
  • The Lowest Trading Costs
  • 50% Welcome Bonus
  • Award-winning 24 Hour Support
$200 Min Deposit
9
  • Award-winning Cryptocurrency trading platform
  • 14 Cryptoassets available to invest in
  • FCA & Cysec regulated
$200 Min Deposit
9.8

Highly volatile unregulated investment products. No EU investor protection.

  • Over 100 different financial products
  • Invest from as little as $10
  • Same-day withdrawal is possible
$100 Min Deposit
9.8
  • 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
$100 Min Deposit
8.5
  • Award-winning Cryptocurrency trading platform
  • $100 minimum deposit,
  • FCA & Cysec regulated
$100 Min Deposit
9.8
Share with other traders!
Avatar

Michael Fasogbon

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.