- Bitcoin settles between $8,600 and $8,750 as bulls lick the wounds from the fall at $9,200.
If the support at $8,600 fails to hold, the ongoing consolidation could end up in declines towards $8,000.
Bitcoin continues to the bullish action from January 14 in an interesting surge above $9,000. There was an attempt to break above the rising channel resistance at $9,200. However, selling activity increased significantly, pushing Bitcoin to levels under $9,000.
Several support levels failed to shield Bitcoin from the declines, paving the way for bearish action that tested the support at $8,500. While recovery has not been forthcoming on Monday, BTC/USD has stepped above $8,600. The upside is facing growing resistance at $8,750, in other words, it will take buyers a lot of effort to rise towards $8,800 (confluence formed by the 50 MA and the 100 MA on the 1-hour chart).
From a technical perspective, the ongoing consolidation between $8,600 and $8,750 is likely to culminate in declines. For instance, the 50 MA double-cross under the 100 MA suggests that bears are increasing their activity. In addition to that, the Relative Strength Index recovery fizzled out at 40. Besides, the indicator's trend has a bearish tone to it, which could further increase the sellers’ presence on the market.
It is vital that the bulls continue to nurse the wounds above $8,600. Because, if the support at $8,500 is broken, BTC could dive towards $8,250 and even test the $8,000 level. On the other hand, a return above $9,000 will depend on the bulls’ ability to retake the position above $8,000, as well as the channel support at $9,000.
Bitcoin Key Levels To Watch
Spot rate: $8,619
Relative change: -78
Percentage change: -0.90%
RSI: Downward slopping, hints more breakdown.
Moving Averages: Double-cross hints increased bearish action.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.