Bitcoin (BTC) Hovers Above $8,000 as it Faces Rejection at $8,200 and $8,400

Bitcoin (BTC) battles the resistance at $8,200. For the past three days, the bulls have made three unsuccessful attempts at $8,200 without breaking it.

After the bulls’ failure to break the resistance at $8, 400, the cryptocurrency dropped to $7,700 low. Immediately, the bulls pulled back to retest the overhead resistance but were resisted again at $8,200. After two major resistances, Bitcoin commenced a sideways move when the resistance became insurmountable.

BTC/USD - 4 Hour Chart

BTC/USD – 4 Hour Chart.

In all, the bulls made three attempts at $8,200 resistance but fail to break it. Each time Bitcoin falls to the low of $8, 000, it resumes the upward move. At the moment, BTC is falling and the price approaches the support line. A break below the support line will sink Bitcoin to the low of $7,600. On the other hand, the upward move is assured if the support remains intact. Bitcoin is trading below a 50% range of the daily stochastic. The market is in bearish momentum.

Price Has Been Sustained Above the Downtrend Line. A Break Below Downtrend Line Will Lead to Further Selling

BTC/USD - Daily Chart

BTC/USD – Daily Chart

On January 7, the bulls successfully break the downtrend line and closed above it. The coin reached a high of $8,400 and fell almost back to the channel. The price found support above the channel and resumed a range-bound move. The implication is that the bear market is assumed to have been terminated by the breakout.

Nonetheless, the coin is fluctuating above the downtrend line. The danger is that if the price falls below the downtrend line, Bitcoin selling pressure will resume. On the other, if the bulls sustain the price above the downtrend line, the upward move is assured. Meanwhile, the Relative Strength Index ((RSI) period 14 level 59 indicates that the price is in the bullish trend zone.

Charts: Tradingview.com


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