The last 7 days of price actions have made Bitcoin stay above $7000 for the month of November. Starting the new month on a short opening could be a bit send a negative sentiment in the market if Bitcoin fails back roll back to November low. However, there’s hope for a bullish continuation if buying pressure resumes.
Bitcoin (BTC) Price Analysis: 4HChart – Bullish
Key resistance levels: $7445, $7844
Key support levels: $7000, $6800
Bitcoin’s showing a sign of weakness on the 4-hour time frame, although the bullish setup would remain valid if Bitcoin can bounce back at $7000 support. Meanwhile, there’s lower support at $6800, followed by $6600 – the November low. Breaking this last bullish defence line might cause a lot of selling pressure in the market.
But if the market can find support at $7000, a huge buy-off should be expected as Bitcoin’s price could swing to 8400 in no time. However, $7445 and $7844 resistances are important levels for the buyers to overcome. Despite the recent drop, Bitcoin is still within a good trading range on the technical indicator, but falling to the lowest region may lead to a heavy sell.
Bitcoin (BTC) Price Analysis: Hourly Chart – Bearish
Looking at the hourly chart, we can see that Bitcoin is weak for the past two days now. More importantly, a heard-and-should pattern is formed but yet to play out. This pattern formation is a short-term sell setup, which could slip BTC price to $7000, $6800 and possibly $6600 support.
If this head-and-shoulders pattern fails to play out, Bitcoin is likely to bounce back to $7400, $7600 and $7800 resistance. In fact, the hourly MACD is suggesting a downward movement on the short-term outlook. Conversely, the RSI indicator is also showing weakness but a possible rebound is likely at the oversold level.
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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.