Bitcoin Price Analysis – New Head-and-Shoulder Forms, Are More Rejections Around The Corner For Bitcoin?

1 January 2020 | Updated: 1 January 2020

• Bitcoin is trapped in a bearish trend with newly formed head-and-shoulder pattern on the 4-hours.
• If the price breaks below $7100 support, Bitcoin would be doomed for a serious fall
• A climb above $7300 could possibly ignite bulls’ hope again!

Bitcoin’s price is facing a lot of bearish pressure over the past few hours, struggling to breach $7300 on the upside and $7100 on the downside. A break at this mentioned price levels would determine whether where BTC would head next in the coming days. For now, the bears are currently in charge of the market.

Key resistance levels: $7300, $7550, $7700
Key support levels: $7100, $6800, $6570

Bitcoin (BTC) Price Analysis: 4-Hours Chart – Bearish

The last two weeks of price actions have captured Bitcoin in a complete head-and-shoulder pattern. But the breakout has been recently suspended by the last 24-hours rejection around $7100 support – the neckline. Bitcoin is now facing the tough $7300 resistance again.

BTCUSD, 4H Chart – January 1

Meanwhile, the buyers may be trapped if BTC suddenly plunges below the neckline. The price ranges for such a move is -7.86% ~ $6570, although Bitcoin would encounter support at $6800. Alternatively, the price is likely to climb back to $7550 and $7700 if the buyers can regroup well above $7300 resistance.

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

Following the December 29 drop from $7550 resistance, Bitcoin has again found support at $7160 after meeting multiple rejections on the yellow diagonal resistance. Bitcoin has currently gained small momentum to $7236, nearing this diagonal resistance line. It may continue to suppress the buying pressure.

BTCUSD, 15M Chart – January 1.

If we can see a strong surge above this resistance, especially the $7335, Bitcoin might reclaim the $7440 and $7550 in no time. On the other hand, a continuous rejection at the yellow line might cause a lot of pain in the market. BTC is likely to revisit the $7100 support as $7000 may as well be explored.

BITCOIN SELL SIGNAL

Sell Entry: $7277
TP: $7163
SL: $7351

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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.