Bitcoin Price Analysis – Bitcoin Continues To Plot Big Move As Price Remains In Consolidation

Bitcoin Price Analysis – Bitcoin Continues To Plot Big Move As Price Remains In Consolidation

 

• The latest weakness in the price could foot a short-term bearish setup for Bitcoin.
• Bitcoin turns weak after smashing 7-month high around $9600.

Over the past five days now, Bitcoin’s volatility has been subdued with choppy price actions and at the same time keeps the world largest cryptocurrency in a consolidation mode. Today, Bitcoin has slightly dropped from a 7-month high of $9625 to where it’s currently trading at. If the price manages to close below $9200, BTC would be doomed for a strong bearish correction.

Key resistance levels: $9625, $10000
Key support levels: $9000, $8600

Bitcoin (BTC) Price Analysis: Daily Chart – Bearish

Bitcoin has been struggling with the red resistance zone for a while now. Apart from suppressing bullish actions for days, this $9200-$9600 range has become a controversial area amongst traders since late January. This scenario has subjected Bitcoin to a squeeze. Most times, such squeeze often lead to a big move in the market, be it continuation or reversal.

BTCUSD, Daily Chart – February 3

However, a continuation would occur if Bitcoin breaks well above the red zone of $9625 resistance before looking next for $10000. In case of a reversal, Bitcoin could breach $9200 to $9000 and $8600 support. A steep drop could further roll BTC into $8400 on the rising trend line with a potential bounce. The technical indicators suggest that Bitcoin is getting weak on the daily chart. A fall could be underway.

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

Bitcoin is slowly heading downward on the 4-hours chart. As we can see, the price was recently rejected from the channel’s resistance for the past few days now. The bearish play would become significant if Bitcoin slump to the channel’s support that is forming since January 11. However, the closest support is $9000 and $8800. If Bitcoin dips beneath this channel, it could result in a massive loss in price.

BTCUSD, 4H Chart – February 3

At the moment, the volume is dropping on the 4-hours chart. So we can expect a decline. Should Bitcoin keep supported by the $9200, the market could remain on a sideways or break up to the next resistance level of $9600 and $9800. After dropping, Bitcoin has now reached the mid-level on the technical RSI and MACD indicators. A cross below this level could trigger more sell for Bitcoin. As of now, Bitcoin is footing a bearish pattern.

BITCOIN SELL ORDER

Sell: $9300
TP: $9134
SL: $9704

  • Broker
  • Benefits
  • Min Deposit
  • Score
  • Visit Broker
  • 20% welcome bonus of upto $10,000
  • Minimum deposit $100
  • Verify your account before the bonus is credited
$100 Min Deposit
9
  • Award-winning Cryptocurrency trading platform
  • 14 Cryptoassets available to invest in
  • FCA & Cysec regulated
$200 Min Deposit
9.8

Highly volatile unregulated investment products. No EU investor protection.

  • Over 100 different financial products
  • Invest from as little as $10
  • Same-day withdrawal is possible
$100 Min Deposit
9.8
  • 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
$100 Min Deposit
8.5
  • Award-winning Cryptocurrency trading platform
  • $100 minimum deposit,
  • FCA & Cysec regulated
$100 Min Deposit
9.8
Share with other traders!

Author : Michael Fasogbon

Avatar

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.