Bitcoin (BTC) Price Analysis – Retracement Mode: Bitcoin Locating $7300 To Refuel Swing High

Bitcoin (BTC) Price Analysis – Retracement Mode: Bitcoin Locating $7300 To Refuel Swing High

Last week, Bitcoin’s price regains momentum to $7500 on Bitfinex after locating support at $7100, holding over the past week. Though the bullish move is looking realistic; Bitcoin needs to break more key resistance zones before we can confirm a potential reversal above $8000. For now, $7900 is an important resistance to set BTC on a bullish mode.

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

Key resistance levels: $7500, $7700, $7900
Key support levels: $7100, $6800, $6500

Bitcoin is captured in a sideways trend over the past weeks. The mid-December drop to $6500 was a retest to the late November drop, although BTC has recovered back above $7000 and now trading around $7355 at the moment. Now, Bitcoin is pulling back near the recent break zone of $7300. If this zone fails to hold, BTC may roll back to $7100 support, where the lower-white horizontal zone lies.

BTCUSD-4H-Chart-December-30

A drive below the lower zone could allow a retest at $6800 and $6500 support, marked red on the chart. On the upside, there are close resistances at $7500 and $7700, where the upper-white horizontal zone lies. The major resistance here lies at $7900, marked green on the 4-hours chart. However, Bitcoin is expected to keep rising as long as the RSI and MACD remain positive.

Bitcoin (BTC) Price Analysis: Hourly Chart – Bullish

Bitcoin is following a bullish sentiment on the hourly chart but the price is a bit weak over the last 24-hours. The market is currently sitting on the white rising support line, forming since December 25. Meanwhile, a false break is likely to $7300 – marked blue on the hourly chart. The bears may completely take over if the mentioned price level breaks.

BTCUSD, Hourly Chart – December 30

The $7200 and $7100 supports may be exposed to selling pressure once again. However, BTC bulls may soon step back in the market. Reclaiming $7400 and $7500 resistance could trigger more buy to $7600-$7700 area. But looking at the technical indicators, Bitcoin is still looking for a rebound level. We can expect the rally to continue as soon as the pullback ends.

BITCOIN BUY SIGNAL

Buy Entry: $7304
TP: $7500
SL: $7277

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Author : Michael Fasogbon

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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.