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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