Bitcoin Price Analysis – BTC Drops Back to $8500, Will This Support Continue To Hold Bearish Actions?

23 January 2020 | Updated: 23 January 2020

• Bitcoin reached key support but awaiting the next wave.
• The price could bounce back if the $8500 level holds.

Since our previous crypto trading signals, Bitcoin’s price has moved to the downside, touching the $8500 support at the time of writing. This support has jolted price since the last sharp correction. If Bitcoin manages to break this support level, a strong correction may last to $8200 and even beyond.

Key resistance levels: $8750, $8960, $9150
Key support levels: $8400, $8300, $8200

Bitcoin (BTC) Price Analysis: Hourly Chart – Neutral

Looking at the hourly chart, we can see that Bitcoin is still trading inside a channel. Currently, the price has dropped to the lower boundary of the channel. BTC tried to break this channel an hour ago but the attempt was rejected. Meanwhile, the bears are regrouping back again.

BTCUSD -Hourly Chart – January 23

If this bearish footing leads to a breakout, Bitcoin may be doomed for a heavy loss. The next level of support to consider here is $8300 and $8200. But if Bitcoin’s price continues to respect this channel, we should expect a bounce back to $8750 to reach the channel’s upper boundary. A notable breakup would revamp Bitcoin back to $8960 and $9150 resistance.

Bitcoin (BTC) Price Analysis: 15M Chart – Bearish

Bitcoin is looking bearish on the 15-minutes time frame. The price is captured in a short-term descending channel over the last 24-hours trading. Bitcoin has now reached the bottom of the channel. So we can anticipate a bounce back to the channel’s upper boundary any moment from now.

BTCUSD -15M Chart – January 23

If we see a drop beneath the descending channel, the BTC price may further look for support at $8400 and $8300. Meanwhile, the bullish retracement level to watch out for is $8600 resistance. If the resistance breaks, Bitcoin would resume bullish towards the yellow line of $8664 and $8776 resistance. As of now, BTC is still deciding on the next wave.

BITCOIN BUY ORDER

Buy: $8507
TP: $8600
SL: $8450

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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.