The $7300 – $7400 zones have become a tough resistance for Bitcoin to surpass since yesterday. The buying pressure has been almost halted, although there’s still hope for the bulls if BTC remains above $7000. Meanwhile, the six-month bearish bias is still dominant in the market but we may see a short-term bullish play to $8000 soon. With -0.41% loss, Bitcoin currently holds a market cap of $130 billion and a trading volume of about $23.3 billion.
Bitcoin (BTC) Price Analysis: Hourly Chart – Neutral
Key resistance levels: $7300, $7400, $7700
Key support levels: $7000, $6800, $6600
From a short-term perspective, we can see that Bitcoin is finding it difficult to breach the $7400 resistance for a couple of days now. This resistance is an important level for BTC next bullish swing. But if the buying pressure continues to remain weak, the market may roll back to the bottom of the broadening wedge pattern that is now forming on the hourly chart.
Obviously, Bitcoin’s price is slowly dropping from the wedge’s upper boundary. A continuation of this slow price reduction could bring us back to $6600 after leaving $7000 and $6800 support. We can see that the RSI indicator has slightly dropped below 50 levels. Conversely, the MACD is testing the zero level. Inversely, a bullish surge could send BTC to $7300 -$7400 zones, followed by $7700.
Bitcoin (BTC) Price Analysis: 15M Chart – Bearish
Bitcoin is slowly shaping in a descending channel for the past few hours now, suggesting a bearish formation on the 15-minute time frame. Though, the bear setup could gradually send BTC back below $7000 if the price continues to trade in the channel pattern for the next three days. In fact, the downward range is revealed on the technical RSI and the MACD indicators.
As we can see, the market has just bounced off the channel’s lower boundary. Therefore, we can expect a buying pressure to the channel’s upper boundary at $7300 before resuming bearish sentiment to $7000. However, a break at $7300 may extend buying pressure to $7400 and $7500 within a blink of an eye. Should $7000 support breaks, Bitcoin’s price could drop heavily to $6800 and beyond.
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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.