While the bulls anticipated for a retest at $9000 resistance zone, Bitcoin caught traders unaware with a violent breach on $7700 support yesterday. Where erasing the memory of retesting the $9000, the $7700-$8000 price ranges are now key resistance zones for a possible retracement. Following a sharp rebound at $7300, Bitcoin is now waiting at around $7500. We can expect a price swing to either way shortly.
Bitcoin (BTC) Price Analysis: Daily Chart – Bearish
Key resistance levels: $7700, $8000
Key support levels: $7200, $7000
After mounting support at $7700 earlier this month, Bitcoin bounced off, followed by rejection at $8800 while attempting to retest the $9000, which has now become a history for the bulls. Yesterday, Bitcoin fell sharply beneath the $7700 support to $7300, which is now the current support.
Meanwhile, the price seems to be heading towards the lower boundary of the channel pattern to make BTC completes lower lows and lower highs move on the daily chart. We should expect to base at $7200-$7000 support zone if the price drops beneath $7300.
The crypto trading signals that Bitcoin is currently meeting support on the RSI 30 levels. We can expect the price to retest the recently break level at $7700. A Further rise may allow the bulls to see the $8000 resistance once more. However, the MACD suggests that the market is now in the negative zone.
Bitcoin (BTC) Price Analysis: 4H Chart – Bearish
Yesterday, Bitcoin left the $7700 price zone after dropping violently from the four weeks channel pattern. The market is now subdued with choppy price actions after finding support at $7300. If the Bitcoin can show a little strength, we can expect a price recovery $7600 and $7800 resistance, although the bulls are still struggling to overcome the $9500.
The aftermath of the recent bearish actions has slipped the technical indicator (RSI and MACD) to their lowest condition, indicating an undervalued market for Bitcoin. In view of this, selling pressure may reoccur to near support at $7300, $7200 and $7100
BITCOIN SELL SIGNAL
Sell Entry: $7451
TP: $7207 / $7033
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.