Yesterday, Bitcoin traded around the $8600 resistance before closing at $8578 on the day. Today, BTC short opening has made the price to drop as low as $8420 on Bitfinex, amounting to a current loss of 1.60% on the market cap. The entire crypto market is now holding an approximately $232 billion with BTC dominance at 66%. We can expect more decline if Bitcoin’s statistics continue to drop.
Bitcoin (BTC) Price Analysis: 4H Chart – Bearish
Key resistance levels: $8500, $8600, $8800
Key support levels: $8300, $8200, $8100
Reclaiming $9000 resistance might be a little challenging for Bitcoin on the 4-hour time frame if the sellers continue to release selling pressure in the market. The selling has been causing a lot of bearish sentiment, especially the last 24-hours drop all the way from $8699 yesterday. Bitcoin is slightly trading above the $8400 support, although new weekly support is likely at $8100 if the yellow horizontal support breaks.
As per the wedge pattern forming on the chart, Bitcoin’s volatility is seriously contracting to the angle of the wedge. As such, a big price explosion is around the corner. However, the RSI has found support for BTC at the oversold level which may cause the market to bounce to $8600 resistance if the RSI level holds. A break to $8800 resistance might return positive move in the market. All in all, Bitcoin remains bearish on the MACD.
Bitcoin (BTC) Price Analysis: 15M Chart – Bearish
The rejection at $8699 resistance has caused an outright $250 cut from Bitcoin’s price since yesterday. Currently, the market is moving in a descending wedge on the 15-minutes time frame. Bitcoin is likely to move out of the wedge soon. On the upside, the key resistance to watch out for is $8500 and $8600.
As we can see, the technical RSI is poised for a bullish move. Though, the MACD shows that the bears are still gaining control of the market. On the other hand, we may see more selling pressure towards the $8400 support. If BTC drops beneath the mentioned support, we can expect $8300, $8200 and $8100 to suppress selling pressure.
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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.