Since Bitcoin found its local bottom at $15600 earlier this month, it has struggled to reclaim the previous break level of $18k due to a low buying volume. The bears have also failed to show interest as the price hovers sideways.
The recent decrease in trading volume has led shrink in Bitcoin’s volatility for the past few days. As can be seen on the 4-hour Chart, Bitcoin’s price action looks choppy. It is trading conveniently above $16k since the price slightly bounces back from $15,824 on Monday.
Looking at the bearish pennant pattern, which suggests a potential drop, Bitcoin could resume bearishness shortly. The price is slowly targeting the triangle’s support. A steep fall from this mentioned price would trigger a massive sell-off in the market.
If the bearish formation fails to play out and Bitcoin breaks above the pennant, we may see a rally to around $18750. There’s still a chance for a retest of up to $20k before we start to think of a reversal.
While the trend looks indecisive on the lower time frame, Bitcoin remains strongly bearish on the higher time frame as it solidly held $18k as resistance. Whichever way it goes, how the market closes this week will determine what to expect in the coming week.
Bitcoin Price Analysis (BTCUSDT): 4-Hour Chart
Bitcoin currently held support at $16,200, which sits around the triangle’s support. If the price breaks below this support, there’s close support at $15,824, followed by $15,600 – the current monthly support.
The level to watch below this support is $14,000 in case of a further dip. As of now, there’s no volatility in the market.
However, if the price breaks above the pennant, Bitcoin would first need to flip the $17,182 resistance level before increasing to $17,632 and $18,186 resistance levels along the way up.
Key Resistance Levels: $17,182, $17,632, $18,186
Key Support Levels: $16,200, $15,824, $15,600
- Spot Price: $16,660
- Trend: Neutral – Bearish
- Volatility: Low
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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