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.
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.
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
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.