Bitcoin Price Analysis – Bitcoin Hits $8400 On Short-Term, Will This Long Channel Break?

Bitcoin Price Analysis – Bitcoin Hits $8400 On Short-Term, Will This Long Channel Break?

• Bitcoin may completely reverse to $13000 if the six-month channel breaks.
• A drop below $8000 would allow correction to $7800.
• Bitcoin reached $8400 with a weekly gain of 15%.

Bitcoin has now met a short-term resistance of $8400 after witnessing five days positive move. This resistance would determine whether the bullish will continue or not. However, a break or bounce is expected to confirm the next major direction of the market. As of now, the buyers are still holding pressure.

Key resistance levels: $8400, $8800
Key support levels: $8200, $8000

Bitcoin (BTC) Price Analysis: Daily Chart – Bullish

In December 2019, Bitcoin found support at $6500 following a series of drops since the mid-year. This support was followed by a close $6900, which is where the recently gained momentum. Yesterday, Bitcoin broke $8000 and the price has now touched $8400 – nearing the descending channel forming since June 2019.

BTCUSD, Daily Chart – January 8

If the buyers successfully push the price above this channel, Bitcoin may hit $13000 in coming days but the bull may encounter resistance at $8800. Meanwhile, $8400 is an important resistance for this potential rally. Should Bitcoin’s price rejects on the fifth time, the market may roll back to $8000 support. More selling would occur if this support breaks.

Bitcoin (BTC) Price Analysis: 30M Chart – Bullish

It looks like Bitcoin may pull back soon considering rising broadening wedge shaping on the 30-minutes time frame since January 6. The potential sell might take us to $8200 and perhaps $8000 support. But the thing here is that we need to see a clear candle close below the $8300 before price could drop into the grey zones.

BTCUSD, 30M Chart – January 8

If Bitcoin found strong support on these grey zones, we can expect the buyers to resume pressure in the market. The next price range for buying would be $7600 and $7800. That is if the market clears the current $8400 resistance. Looking at the current price actions, BTC is gearing for more buy. However, a correction below the wedge pattern may send trading back in the $7000 zones.

PENDING BUY ORDER

Buy Entry: $8500
TP: $8770
SL: $8391

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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.