Bitcoin Price Analysis – Bullish Signal: Is Bitcoin Breaking Out From This Six-Month Channel?

14 January 2020 | Updated: 14 January 2020

• Bitcoin is breaking out of a long bearish zone – the six-month channel boundary.
• $7600-$8000 support provides a rebound for Bitcoin.
• A retracement move is likely if the price drops below $8500

After finding support at $7600 last week, Bitcoin has further mounted key support at $8000 -which now fuels the current price increase. The buyers are coming up with a strong momentum that is likely to turn the BTC market on bullish impulsive for this year. If the bears react to price actions, we should expect a retracement move to a near or an important support level.

Key resistance levels: $8800, $9600
Key support levels: $8000, $7600

Bitcoin (BTC) Price Analysis: Daily Chart – Bullish

Bitcoin is attempting to break away from a six-month descending channel. The bullish move would confirm if we see a daily price close above this channel. As of now Bitcoin has managed to surpass last week’s $8400 and now trading slightly above $8500. The last 24-hours gain from $8000 signals an incoming bullish momentum.

A clean breakout should provide buying opportunity to June 2019 high ($13700) in coming months.

BTCUSD, Daily Chart – January 14

But for now, the mid-term resistance lies at $8800 and $9600. Meanwhile, Bitcoin is currently sitting on $8000 support. If this support fails to keep the bulls on track, BTC may have support at $7600. Following the past four weeks of gains, Bitcoin’s price would keep appreciating if buyers stay long in the market.

Bitcoin (BTC) Price Analysis: Hourly Chart – Bullish

The latest surge above the yellow symmetrical triangle on the hourly chart indicates that the bulls are back in the market. Meanwhile, Bitcoin’s price has been rejected at $8600. A retracement is likely to play out before BTC continues to climb higher. The potential rebound level here is $8288 – where the horizontal grey area lies on the chart.

BTCUSD, Hourly Chart – January 14

From this area, the next buying target we should be looking at is $8800 and $9000. At the moment, the market is deciding on whether to drop or not. If the bulls regroup above $8500, Bitcoin could significantly surge to the mentioned resistance. However, it’s important to wait for a short pullback before joining the bullish trend.

BITCOIN BUY SIGNAL

Buy Entry: $8289
TP: $8600 / $8800
SL: $8022

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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.