Bitcoin Price Analysis – Bitcoin Charges Again Towards Crucial Resistance, Will It Breakthrough This Time?

Bitcoin Price Analysis – Bitcoin Charges Again Towards Crucial Resistance, Will It Breakthrough This Time?

• Bitcoin is brewing for a fresh increase, but insignificant volatility is keeping rally in suspense.
• If buyers fail to push above $9000, Bitcoin would remain in the wood

After establishing small support around $8700 yesterday, Bitcoin is now completing an inverse head-and-shoulder pattern on the 4-hours chart and at the same time forming a rising triangle on the hourly chart. This bullish formation would become valid once Bitcoin overcomes $9000 resistance. If not, Bitcoin would continue to suffer under bears’ control.

Key resistance levels: $9000, $9500
Key support levels: $8700, $8500

Bitcoin (BTC) Price Analysis: 4H – Bullish

Yesterday, Bitcoin fell slightly to $8700 after failing to breach $9000 resistance, which is the neckline of the head-and-shoulder pattern. Following this drops, Bitcoin is now slowly bouncing back and at the same time forming a right shoulder. Once Bitcoin reaches the neckline ($9000), a clean break should push gains to the white resistance line of $9500.

BTCUSD, 4H Chart – February 4

As can be seen on the chart, Bitcoin’s volume is still low at the moment. If the $9000 continues to reject price, Bitcoin may fall back at $8700 support. In case this support could not contain selling pressure, the price could further bottom at $8500. Even though Bitcoin’s price is still down, we can say the current setup shows that buyers are around the corner.

Bitcoin (BTC) Price Analysis: Hourly Chart – Bullish

For the past few days now, Bitcoin has been facing a critical resistance at $9000. Meanwhile, the market is stylishly forming a rising triangle pattern, which suggests an incoming bullish move for Bitcoin. Volatility is now shrinking as trading nears a tight range on the triangle. A potential breakout is around the corner.

BTCUSD, Hourly Chart – February 4

If Bitcoin breaks above this triangle – $9000, we can expect immediate resistance at $9200. The next important level to watch out for is $9500 resistance. In the opposite direction, Bitcoin is currently supported by $8700. If Bitcoin drops below this support, the next key support to keep an eye on is $8500, marked orange on the hourly chart.

BITCOIN BUY ORDER

Buy: $8836
TP: $9000
SL: $8688

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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.