After breaking below the important $18k support level on Wednesday, Bitcoin found a temporal bottom around $15,600 and has steadily recovered. It retested this support as resistance and now negotiating for a fresh drop.
Bitcoin’s price levels have significantly changed since our previous analysis, and as can be seen on the price chart, the bears have stepped back into the market after trading sideways for four months. It is now trading well around the $17,000 level. The latest downward shift is expected to last for a while before we can see a major reversal.
On the lower time frame, the crypto has shown much strength to regain momentum following a 4% increase over the past 24 hours. But the price has encountered a series of rejections around the $18000 resistance area, marked grey on the daily chart.
A look at the price actions on the higher time frame suggests that Bitcoin is preparing for another heavy rally, which may collapse the price severely near the $10,000 level in the coming week. The recent breakdown and retest on the daily chart are something to pay attention to for confirmation.
Should the resistance area continue to suppress buying pressure for the next couple of hours, followed by multiple rejections, we can expect BTC to resume selling pressure. For the market to become bullish again, Bitcoin must reclaim the $21,500 resistance level.
Bitcoin Price Analysis (BTCUSDT) – Daily Chart
Source: Tradingview
While the price keeps negotiating for a new level of around $18,000, the next resistance level it is likely to face is $18,663. If the price flipped this resistance, the $19,600 resistance level would be the next buy target. The closest resistance to this mentioned level is the $20,000 mark.
In the opposite direction, Bitcoin would first encounter a support level at $16,000, then followed by $15,600; the current holding support. It could plummet to a new-year low of $14,000 if the current holding support fails.
Key Resistance Levels: $18,000, $18,663, $19,600
Key Support Levels: $16,000, $15,600, $14,000
- Spot Price: $17,000
- Trend: Bearish
- Volatility: High
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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