Bitcoin Price Analysis – Price Drops As Bitcoin Looks For Strong Rebound Level

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RESULTS

• A break above the daily channel pattern would confirm a bullish trend.
• Bitcoin holds key support at $7400.
• Short-term sellers regain control of the market after $8000 break.

Bitcoin has continued to remain trapped in a bearish zone, following the January 8 rejection at the descending channel that is forming on the daily chart. The bearish scenario may become uglier if the price further drops below the immediate support zone on the 4-hours chart. As of the time of writing, Bitcoin’s price remains weak!

Key resistance levels: $8000, $8400
Key support levels: $7600, $7400

Bitcoin (BTC) Price Analysis: Daily Chart – Bearish

On January 8, Bitcoin’s price fell after reaching $8400 with a six-day positive rally. The fall has led the market to where BTC is currently priced at $7700. The selling pressure appears much of a retracement to the January 6 break from the smack grey descending channel on the daily chart. Bitcoin may bounce back if the market finds support on this channel pattern.

The key resistance here is $8000. A climb above this support would provide resistance at $8400 again. Should the price fall back in the grey channel, Bitcoin would further look for support on the red rising trend line, from where a bounce is also likely. A continuous drop below these mentioned levels might roll BTC back to $7000 and perhaps $65000. However, the closest support for now is $7600.

Bitcoin (BTC) Price Analysis: 4H Chart – Bearish

Yesterday, we mentioned the important yellow line, acting as a diagonal support line on the 4-hours chart. Bitcoin has breached to meet the horizontal support area of $7650 – where the price is likely to bounce back. If the $7650 fails to provide a rebound, Bitcoin may relocate the $7400.

If BTC finds support and bounces off these mentioned areas, we can expect buyers to resume pressure in the market. By then, the $8000 and $8400 resistance would be the next bullish target. As of now, Bitcoin is still looking for lower levels as sellers might stay for a while before buyers return in the market.

BITCOIN SELL SIGNAL

Sell Entry: $7750
TP: $7666
SL: $7900