Bitcoin appeared not to have found stable support for a bullish swing, although the market had stayed temporarily on the $6800 support for the past two days now. After correcting gain to $7400, BTC has now dropped to the $7000 zones, resuming a bearish trajectory. We may experience a severe drop if the bearish pressure turns heavy.
Bitcoin (BTC) Price Analysis: Daily Chart – Bearish
Key resistance levels: $7300, $7500
Key support levels: $6800, $6400
The bearish impulsive is yet to finish if we consider the descending channel pattern on the daily chart – which suggests that there’s more space to accommodate the suspended selling pressure in the market. The bearish target lies at the bottom of the channel at $6400 – a possible bullish bounce for the market. Moreover, Bitcoin is currently sitting on the $6800 support.
We can see that the last four weeks of price drops has recently led the RSI indicator in the oversold territories to show that the sellers are really gaining dominance. Additionally, the MACD ha crossed back to the negative zones, indicating a strong bearish control. For a retracement, Bitcoin held resistance level at $7300 and $7500 at the moment.
Bitcoin (BTC) Price Analysis: Hourly Chart – Bearish
Bitcoin has continued to show a sign of weakness on the hourly chart. While building a bearish formation, the market is likely to witness another devastating drop which could slip the price of BTC to $6800 support in no time. The sellers are resuming back in the market. This time, the scenario could get uglier if the market breaks below the $7000 support.
Though, Bitcoin has currently found support on the RSI 30 level. A bounce could push the market a bit to the white diagonal resistance line at $7200 before dropping back. A further rise could allow BTC to test the $7370 and $7500, which is a bullish break level for the market. The recent rejection on the MACD indicator may cause a more selling pressure in the market. But now, BTC volatility remains low.
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TP: $6800 / $6400
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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.