Bitcoin Price Analysis – Bitcoin Eyes $7600 But $8000 is Holding Strong

Bitcoin Price Analysis – Bitcoin Eyes $7600 But $8000 is Holding Strong

• Bitcoin is in the middle of a consolidation circle.
• Sellers may gain control if $8000 breakdown.

On January 8, Bitcoin’s price hits $8400 after recording a six-day price increase. The market saw a small drop to $7800 before bouncing back to where BTC is now priced at $8000. However, the entire market cap has climbed back above $200 billion with BTC dominance of 68.1%. We can expect significant growth as soon as demand is increasing. Otherwise, Bitcoin might roll back!

Key resistance levels: $8800, $9600
Key support levels: $7800, $7400

Bitcoin (BTC) Price Analysis: Daily Chart – Bullish

Since Bitcoin’s price dropped from the channel’s resistance of $8400, the market has remained in the middle of consolidation. This suggests that BTC is deciding on the next major rally. On the downside, the market is supported by $7800 – the triangle that got breached during last week rally.

BTCUSD, Daily Chart – January 13

A sell below this support might lead to a serious sell-off as $7400 support may be explored. On the upside, Bitcoin is facing $8400 resistance. If this resistance breaks, Bitcoin is expected to surge to near resistance at $8800 and $9600. However, the recent crossover on the daily technical indicators reveals that the BTC market is currently bullish.

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

For the past three days now, Bitcoin’s price has been quite stable around the $8000 price levels following a rejection breaking slightly above the rising channel pattern on the 4-hour chart. As of now, the technical MACD and RSI are aiming to fall but still holding support on their mid-levels. We may experience a severe drop if BTC drops below the mentioned indicators level.

BTCUSD, 4H Chart – January 13

The support Bitcoin is likely to look out for is $7600 to meet the channel’s support. From here, we should expect the market to bounce back to $8400 and potentially $8800 resistance. If Bitcoin drives beneath this channel, the price could roll back to $6900 in no time. As it stands now, buyers are still showing commitment in the market.

BITCOIN SELL SIGNAL

Sell Entry: $8088
TP: $7666
SL: $8300

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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.