Bitcoin Price Analysis – Bitcoin Signals Retracement But Short-Term Bullish Remains Valid

Bitcoin Price Analysis – Bitcoin Signals Retracement But Short-Term Bullish Remains Valid

• After breaking out of a descending channel, Bitcoin forms a new bullish pattern in a short-term channel.
• If Bitcoin drops, a possible correction may roll the price to $7400 before bouncing back.
• Short-term bullish pattern may send BTC price to $8000 in the coming days.

Following last week recovery from $6900 low, Bitcoin has seen a substantial increase to $7583 – where BTC price was slightly rejected yesterday. Bitcoin is now priced at $7540 following a +10% gains under $72-hours. We can expect more increase as soon as the price surpasses the previous high.

Key resistance levels: $7600, $7700
Key support levels: $7500, $7400

Bitcoin (BTC) Price Analysis: 2H Chart – Bullish

On December 3, Bitcoin’s price bounced off the channel’s lower boundary after witnessing a lot of bearish pressure. This recovery has dramatically led to a break, bringing BTC out of the two weeks channel boundary. After nearing $7600 yesterday, the market has remained calm due to weakness in price.

BTCUSD, 2-Hours Chart – January 6

Bitcoin is likely to correct down if the buyers fail to regroup further. The closest support for a rebound is $7400 as indicated on the 2-hours chart. If the buyers manage to push the price above the previous resistance, we may see a further gain to $7700; although $8000 is the short-term bullish target. As it is now, it appeared Bitcoin may drop a bit before gaining momentum.

Bitcoin (BTC) Price Analysis: 30M Chart – Bullish

Bitcoin has faced a lot of multiple rejections around $7600 over the past ten hours. Though, the bullish momentum may refuel at $7500. But considering the channel pattern, Bitcoin is likely to retest the $7440 support zone before we can see a decent rally. As we can see, volatility has remained low for a while now.

BTCUSD, 30-Minutes Chart – January 6

More so, a steep drop beneath the channel boundary may cause a lot of bearish sentiment back to $7000. But as of now, the bullish trend is still valid in the channel pattern. However, if the market breaks above the rising channel, Bitcoin may rally seriously to $7600 and $7700 resistance. For now, the bulls are gaining control of the market.

BITCOIN BUY SIGNAL

Buy Entry: $7427
TP: $7637
SL: $7300

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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.