Bitcoin Price Analysis – Mid-Week Reverse Play: $8400 Rejects Short-Term Buyers As Bitcoin Looks For Support.

Bitcoin Price Analysis – Mid-Week Reverse Play: $8400 Rejects Short-Term Buyers As Bitcoin Looks For Support.

• Bitcoin’s price rejects at $8400 after a short-term bullish rally.
• $7600 support may provide a rebound for Bitcoin if $7800 fails
• Bitcoin loses +5.36% following last 24-hours selling

The $8400 resistance has rejected short-term buyer but it appeared the bullish trend is still valid on the 4-hours chart as Bitcoin relies on the yellow diagonal support. However, the current break below the wedge on the hourly chart indicates a bearish correction that may last to $7500 or even $7300.

Key resistance levels: $8000, $8200, $8400
Key support levels: $7800, $7650, $7400

Bitcoin (BTC) Price Analysis: 4HChart – Bullish

The break from the channel pattern has led Bitcoin all the way to $8400 before meeting strong resistance yesterday. Meanwhile, the bullish rally from $6900 was supported by a yellow rising trend line. Following the last 24-hour rejection, Bitcoin has dropped below $8000 and the price is currently sitting at $7866 – testing the yellow line.

BTCUSD, 4H Chart – January 9

We can expect a rebound at this diagonal support. If a rebound fails, Bitcoin may extend correction to the grey horizontal support zone of $7650 and even $7400. But as of now, there’s still hope for the buyers if BTC can bounce off the yellow rising support trend line. However, a successful bounce above $8000 might allow the buyers to reclaim the $8400.

Bitcoin (BTC) Price Analysis: Hourly Chart – Bearish

Yesterday, we mentioned the potential move to $8000 on the lower time frame. As it is now, it appeared Bitcoin is turning bearish following the recent wedge breakout. The price range for the ongoing selling is $7500 on the hourly chart. A steep fall may extend selling pressure to $7300. Meanwhile, Bitcoin could resume bullish if $7700 support can keep sellers on hold.

BTCUSD, Hourly Chart – January 9

Looking at the current setup, the bears might stay in the market for a while. If the buyers can successfully counter the current bearish set up well, we may see a quick recovery to $8200 and $8400 resistance after reclaiming the $8000 level. Such a move look unrealistic at the moment as the correction is healthy for Bitcoin to gather momentum for the next rally. Currently, the bears are in play.

PENDING SELL ORDER

Sell Entry: $7787
TP: $7644 / $7411
SL: $8022

  • Broker
  • Benefits
  • Min Deposit
  • Score
  • Visit Broker
  • 20% welcome bonus of upto $10,000
  • Minimum deposit $100
  • Verify your account before the bonus is credited
$100 Min Deposit
9
  • Award-winning Cryptocurrency trading platform
  • 14 Cryptoassets available to invest in
  • FCA & Cysec regulated
$200 Min Deposit
9.8

Highly volatile unregulated investment products. No EU investor protection.

  • Over 100 different financial products
  • Invest from as little as $10
  • Same-day withdrawal is possible
$100 Min Deposit
9.8
  • Trade top Cryptos such as Bitcoin, Litecoin and Ethereum plus more
  • Zero commissions and no bank fees on transactions
  • Around the clock service with support in 14 languages
$100 Min Deposit
8.5
  • Award-winning Cryptocurrency trading platform
  • $100 minimum deposit,
  • FCA & Cysec regulated
$100 Min Deposit
9.8
Share with other traders!

Author : Michael Fasogbon

Avatar

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.