Bitcoin Price Analysis – Bitcoin Makes Wedge Pattern To $9000 But Correction is Underways

17 January 2020 | Updated: 17 January 2020

• Bitcoin hits $9000 after a long-term breakout.
• BTC remains bullish but sellers lurk around.
• A break below $8500 may set the market on correction mode.

Again, Bitcoin’s price has increased by roughly 5% to hit $9000 after breaking from the strong bearish zone of $8400 this week. This surge has made BTC reach the wedge resistance on the 4-hours chart. A downward correction is clearly playing out on the hourly channel pattern. Once Bitcoin clearly breaks below $8500, we should expect a short-term sell to $8000. Still, Bitcoin remains bullish!

Key resistance levels: $9000, $9400
Key support levels: $8600, $8500

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

Bitcoin has made an upward shift the wedge’s resistance at $9000 a few hours ago. The buyers are still showing interest in the BTC price. Considering the last 4-hours rejection candle that led the bulls to $9000 earlier today, Bitcoin’s price is likely to correct to the wedge’s support of $8500 in the next few hours.

BTCUSD, Hourly Chart – January 17

A drive below this wedge might cause a lot of bearish sentiment. A rebound from this wedge’s support could send Bitcoin straight to $9400 resistance in the next rally. But looking at the price action, the BTC market is due for a correction. A small bearish play is around the corner. Nevertheless, the technical indicators are still up. So, we can expect bullish continuation once Bitcoin run a retracement.

Bitcoin (BTC) Price Analysis: Hourly Chart – Bullish

So far, the $8400 breakout has allowed Bitcoin trade in a channel boundary with a mild gain to $9000. Now, the price is dropping toward the channel’s support. It may lead to a devastating drop if $8600 fails to provide support for the BTC market. A break could floor Bitcoin at $8400 and $8200.

BTCUSD, Hourly Chart – January 17

Bouncing off this channel could allow buyers to retest $8800 and $9000 resistance once more. As shown on the RSI, the price of Bitcoin is currently dropping, although now sitting on the 50 level. The MACD moving average is currently aiming a bearish cross. If these indicators drop below their mid-levels, BTC would confirm a bearish correction to key supports. However, the bullish bias remains valid at the moment.

BITCOIN SELL SIGNAL

Sell Entry: $8814
TP: $8514
SL: $9050

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Michael Fasogbon

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.