Bitcoin Price Analysis – Bitcoin Rejects $8200 Resistance Following Sharp Drops, Will $7700 Hold?

Bitcoin Price Analysis – Bitcoin Rejects $8200 Resistance Following Sharp Drops, Will $7700 Hold?

• Bitcoin remained trapped in a three-week descending channel on the 4-hours chart
• The $8200 level is now a crucial resistance for Bitcoin

Yesterday, Bitcoin saw a small bounce to near $8200 but failed after witnessing a quick sell to $7760. Meanwhile, the current $7700 support has continued to suppress selling pressure. Due to this drops, Bitcoin is now trading back under $8000. In case this current support fails to hold, Bitcoin is likely to extend scenario to the downside.

Key resistance levels: $8200, $8500
Key support levels: $7700, $7500

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

Following the $8200 rejection yesterday, Bitcoin is now facing the $7700 support that was established on Monday. Currently, it appeared the bears are showing interest again. This time, the $7700 support level could be wiped out with huge selling pressure. If such a scenario occurs, Bitcoin may look for another support around $7500 and below.

BTCUSD, 4H Chart – March 11.png

In the opposite direction, the bulls’ hope may be restored if Bitcoin can continue to hold well above the $7700. If this price action plays out, the first level of resistance to watch out for is $8200, from where BTC price got rejected yesterday. A successful climb above this resistance would allow further buy to $8500, around the channel’s resistance. Nonetheless, Bitcoin is still looking bearish on the 4-hours chart.

Bitcoin (BTC) Price Analysis: Hourly Chart – Bearish

Bitcoin is revealed in a downward range on the hourly chart, but the price has been moving sideways over the past 48-hours now. The ongoing consolidation suggests a potential change in trend. As we can see, Bitcoin is preparing for another dip. If the price falls significantly below the red support line of $7750, Bitcoin may found new support around $7600 and $7500.

BTCUSD, Hourly Chart – March 11

Following yesterday’s false break above $8000, Bitcoin now created resistance at $8180. If Bitcoin regains momentum above this new resistance, the next buying target would be $8380, marked orange on the hourly chart. Above this resistance, more gains are expected to come into play.

BITCOIN SELL ORDER

Sell: $7850
TP: $7760
SL: $8055

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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.