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

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

• 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.

BTCUSD, Daily CHart – January 10

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.

BTCUSD, 4H CHart – January 10

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

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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.