Following the recent positive move, Bitcoin has seen a quick gain of 1.77% in less than eight hours, making BTC trade at $7300 at the moment. Earlier today, the market was under a lot of bearish pressure but considering the latest buying that led to a channel breakout on the 15-minutes time frame; Bitcoin may face the $7400 resistance once more before advancing higher. If this resistance remains difficult for the bulls to surpass, the price would continue to face rejection until a strong bullish setup is formed.
Bitcoin (BTC) Price Analysis: Hourly Chart – Neutral
Key resistance levels: $7400, $7600, $7800
Key support levels: $7200, $7000, $6800
Bitcoin is almost completing an inverse head-and-shoulder pattern on the hourly chart. This pattern is a bullish formation that could play out any time from now. This time, the $7400 resistance that has been holding Bitcoin for about two days could become support. However, a breakout could propel BTC price to $7600 and $7800 within a blink of an eye.
After recovering sharply from a new daily low of $6880, Bitcoin has now moved immediate support to $7200, followed by $7000. Due to the latest price increase, Bitcoin is now trading above the RSI bullish zone after sitting mounting support on the 30 level. Though, the MACD is yet to make a clear bullish signal. A climb back above the immediate resistance should confirm a short-term bullish run for Bitcoin. However, BTC is indecisive amidst a bearish trend.
Bitcoin (BTC) Price Analysis: 15M Chart – Bullish
Looking at the bigger picture, Bitcoin’s trading has moved out of the descending channel forming on the 15-minutes time frame since yesterday, following a sudden price increase during the London session today. A close look at the price chart suggests a bullish formation for Bitcoin. Touching $7409 on the day, the next buying target lies at $7500 and $7600 resistance.
Meanwhile, the recent surge has led Bitcoin to the overbought zone on the RSI indicator, now attempting to fall back. Gauging the MACD, Bitcoin has entered a positive zone but poised for a minor downward correction which could cause the price to pull back to $7200 before rising back. Testing $7100 and $7000 support could allow BTC trade back inside the channel pattern. As of now, a bullish setup is forming for Bitcoin on the short-term perspective.
BITCOIN SELL SIGNAL
Sell Entry: $7300
- Min Deposit
- Visit Broker
- Trade top Cryptos such as Bitcoin, Litecoin and Ethereum plus more
- Zero commissions and no bank fees on transactions
- Around the clock service with support in 14 languages
- Trusted provider
- Large amount of assets available
- Secure payment methods
- Award-winning Cryptocurrency trading platform
- 14 Cryptoassets available to invest in
- FCA & Cysec regulated
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.