Bitcoin Price Analysis – Bitcoin is Plotting a Pull Back After Getting Overbought, Can Bull Keep Momentum in Shape?

Bitcoin Price Analysis – Bitcoin is Plotting a Pull Back After Getting Overbought, Can Bull Keep Momentum in Shape?

 

• Bitcoin drops to $9300 after seeing a -3% discount overnight.
• The bullish sentiment may suspend for a while if Bitcoin breaks $9200 support.

Following a -3% losses overnight, Bitcoin has now dropped to around $9300 after testing $9555 as weekly high. This price cut pulled Bitcoin beneath the trend line on the hourly chart. It may lead to another correction if the price further drops. However, buyers are still present. So, there’s hope for more upswing if they can reinforce stronger.

Key resistance levels: $9700, $10000
Key support levels: $9000, $8600

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

After dropping sharply to $9100 yesterday, Bitcoin got bought back to $9500 before marking a daily high at $9555. The bears have reacted again with a discount to $9300. Bitcoin’s price is technically overbought on the mid-term. We may experience a short move sooner than later.

BTCUSD, Hourly Chart – January 31

In anticipation of a bearish move, we may need to keep an eye on the immediate white support are ($9200) that BTC is targeting at the moment. A colossal drop could send price to $9000 and $8600, right on the wedge’s support before bouncing back. Inversely, Bitcoin may keep growing towards the wedge’s resistance $9700 and $10000 if the $9555 resistance breaks.

Bitcoin (BTC) Price Analysis: Hourly Chart – Bullish

Bitcoin has dropped beneath the orange rising trend line that was providing support for the market since January 26. This break could become devastating if BTC pulls beyond the $9250, though the key breakout level lies at $9100 – where Bitcoin’s price was rejected yesterday. Next to this level lies psychological support of $9000 – right in the second white zone.

BTCUSD, Hourly Chart – January 31

In case Bitcoin dips and finds support at these mentioned price levels, we should expect a quick bounce to $9555. But if the current pullback turns false, Bitcoin would continue to advance higher after reclaiming the previous resistance. The next buying target would be $9700 and $9800. From a technical standpoint, Bitcoin is overbought and ready to correct downward.

BITCOIN SELL ORDER

Sell: $9394
TP: $9104 / $9034
SL: $9614

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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.