Bitcoin Price Analysis: Bitcoin Recovers 3% Overnight But Bearish Correction Continues

Bitcoin Price Analysis: Bitcoin Recovers 3% Overnight But Bearish Correction Continues

• After a wedge breakdown, Bitcoin is still suspending major correction on the 4-hours chart
• Bitcoin is already forming a lower low and lower high pattern in an hourly channel.

Bitcoin continued to struggle under $7000 since price plunged from $7450 last week. After dropping to $6600 yesterday, Bitcoin slightly bounced back with 3% to reach $6900 at this time of writing. It would take a significant break above  $7000 level for Bitcoin to resume the uptrend. As of now, bulls are finding it difficult to overcome this key resistance level.

Key resistance levels: $7000, $7191, $7450
Key support levels: $6600, $6400, $6200

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

As can be seen on the 4-hours chart, Bitcoin recently recovered from $6600 after falling off an ascending channel on April 10. At the moment, Bitcoin’s price is increasing towards a key level of $7000, which is around the grey descending line that has been forming since February.

BTCUSD, 4H – April 14

Bitcoin could start a new bullish cycle if the price breaks above this line. In such a case, Bitcoin’s price is expected to reclaim $7191 and $7450 resistance. Towards the downside, a major line of support is $6600 – marked yellow. Below this support lies $6400 and $6200 – blue line. A further break could dip BTC in the grey demand zone in no time.

Bitcoin (BTC) Price Analysis: Hourly Chart – Bearish

A look at the market structure suggests that Bitcoin is following a bearish trend on the hourly time frame. The lower low and lower high pattern are captured in a channel; although Bitcoin is currently retracing near the channel’s resistance at $7000. From here, we can expect a huge price movement to the downside if Bitcoin keeps respecting this channel boundary.

BTCUSD-Hourly-April-14

If not, the price of Bitcoin may increase to $7191 and $7450 resistance, above the channel. An increase above this resistance would confirm a fresh bullish rally. However, Bitcoin is currently trading around $6800 support and similarly holding major support at the channel’s lower boundary – $6600.

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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.