Bitcoin Price Analysis – Bitcoin Shows No-Trade Sign Due To Recent Sharp Correction

Bitcoin Price Analysis – Bitcoin Shows No-Trade Sign Due To Recent Sharp Correction

• Latest correction suspends long-term bullish sentiment.
• Bitcoin remains indecisive after correcting loss at $8500.
• The channel break turns BTC bearish on the hourly chart.

Yesterday, Bitcoin’s price saw a sudden correction from $9150 to $8450 after seeing four weeks of growth. Though, the price has bounced a bit to $8650 – where BTC is currently priced at. If the bulls are unable to regroup well, the price of Bitcoin could roll over to $8000 in the next few days.

Key resistance levels: $8800, $9150
Key support levels: $8450, $8000

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

Over the past weeks, Bitcoin saw a lot of gains to reach $9150 mark yesterday. After that, the price sharply corrects to $8450 but has now seen a small recovery to $8650. Meanwhile, this bullish pattern is formed inside a wedge. Since the drops, Bitcoin’s price has remained at the wedge’s support. BTC may bounce back to $8800 and $9150 resistance if buyers regroup well.

BTCUSD, 4H Price Chart – January 20

However, the mid-term bullish wave is still valid but Bitcoin is actually indecisive at the moment. If the BTC market clearly falls from the wedge boundary, the price may retest $8450 support. A break beneath this support could extend selling pressure to $8000. But as of now, there’s no-trade sign in the market.

Bitcoin (BTC) Price Analysis: Hourly Chart – Bearish

The recent drop in price has caused a sharp pain amongst BTC traders, bringing the price beneath the six days rising channel. As we can see, the market is now subdued with choppy price actions. Currently, Bitcoin is pinned on $8450 support. The channel break has led the sellers back in the market.

BTCUSD, Hourly Price Chart – January 20

If Bitcoin can find support on $8450, the price could retest the channel’s lower boundary at $8800 resistance before selling back. A climb above this resistance could allow more gains to $9000. But if the market falls back to the current support and breaks down, Bitcoin would drop into $8200 support – where the yellow trend line lies. Whichever way, BTC is currently bearish on the hourly chart.

BITCOIN SELL SIGNAL

Sell Entry: $8650
TP: $8500
SL: $8854

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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.