Bitcoin Price Analysis –BTC Spikes To $7400 After Sudden Reversal But Now Facing $7300 Resistance

Bitcoin Price Analysis –BTC Spikes To $7400 After Sudden Reversal But Now Facing $7300 Resistance

• Bitcoin surges $500 to climb back to reach $7400 but $7100 is likely for a retracement.
• The channel breakout on the hourly chart signals short-term bullish setup.
• A mid-week reversal is at play after locating supports at $6900.

Following the past three days of price drops, Bitcoin recently saw a sudden price increase after pinning support at $6900 a few hours ago. As the buyers step back into the market, we should anticipate more buying to the next resistance levels; although we might see a small retracement to $7100 support before rising back.

Key resistance levels: $7400, $7550
Key support levels: $7100, $6900

Bitcoin (BTC) Price Analysis: Hourly Chart – Bullish

A few hours ago, Bitcoin’s price increased sharply with a massive +7% gains to $7400 after a three days fall to the descending channel’s support of $6900. It appeared the downward correction has ended. Bitcoin is now showing strength as buyers step back in the market. The recent channel break is also an indicator of a bullish formation.

BTCUSD, Hourly Price Chart – January 3

Meanwhile, BTC is currently looking for a retest around $7100 support. We can expect the price to bounce back to $7400 and $7550 resistance. The upswing may hold if $7300 resistance proves difficult for the buyers to surpass. However, the bullish setup is firmly supported by $6900. More so, the hourly RSI is currently positive but the MACD is still finding its way out of the negative zone.

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

After touching $7400, Bitcoin’s price drops and has continued to trade under $7300 resistance that has been posing threat to the bulls over the past days. Nonetheless, long-traders are still optimistic to more buying pressure as they might reclaim $7400 as soon as the white horizontal zone is surpassed.

BTCUSD, 30M Price Chart – January 3

The latest bullish swing is revealed on the technical RSI indicator. The positive crossover on the hourly MACD also shows that the buyers have returned in the market. If Bitcoin fails to advance higher, followed by multiple rejections around $7300 area, the price could drop to $7100 – the yellow trendline. A further drop may allow a retest at $7000. As of now, BTC is deciding on the next move.

BITCOIN BUY SIGNAL

Buy Entry: $7111
TP: $7284 / $7387
SL: $6885

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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.