Key Highlights:
- 4-Hour Equilibrium Pattern
- Selling pressure continues
- Relief bounce might be on the way if Bitcoin can breakout from the Equilibrium pattern
| ⠀Bitcoin price: | $8,533 |
|---|---|
| ⠀Key BTC resistance levels: | $8,799, $8,971, $9,000, $9,303, $9,990 |
| ⠀Key BTC support levels: | $8,511, $8,445, $8,238, $8,000 |
*Price at the time of writing
Bitcoin has continued with its daily downtrend as the bulls have been unable to see any significant bounces yet. They were able to form 2 bullish reversal candlesticks on the daily chart that got no followthrough and they are now battling for the current 4-hour equilibrium pattern.
The selling pressure continues as the daily RSI gets pretty close to the oversold zone. The bulls need to see a bounce soon or they will lose all momentum and strength. It is not game over for the bulls which continue to hold the weekly uptrend and still have a great monthly chart behind them. They are looking for a higher low on the weekly chart before climbing back up again.
How to buy Bitcoin (BTC) on Binance
Bitcoin price analysis
What has been going on?
Everyone was expecting a Bitcoin bounce where Bitcoin simply sets another lower high and continues with the downtrend but it seems that the bears have more strength than expected. If Bitcoin breaks below the recent support level of $8,445 the bulls will look at $8,238 support level and then a freefall if the bearish pressure continues.
It’s important to note that the weekly chart is still in an uptrend although the possible weekly bull flag is now definitely broken.
Bitcoin price short-term prediction: Neutral/Bearish
The bulls still have a chance on the short-term after being able to form a 4-hour equilibrium pattern. The last lower high was formed at $8,799 and the bulls are currently trying to form a higher low at $8,511. If this level is confirmed, the equilibrium pattern will be fully confirmed and the bulls will have a chance to take control again.
It’s important to note that the bulls have been unable to break above the 12-period EMA since the beginning of the crash and a break above this level would be quite notable. The 4-hour RSI has been extremely overextended for a while and it’s still close to the danger zone.
Where is the resistance towards the upside?
The nearest resistance for Bitcoin currently is located at $8,650, the 12-EMA on the 4-hour chart. The next would be a breakout from the 4-hour Equilibrium pattern-breaking above the resistance at $8,799.
Then the last lower high formed here at $8,971 and $9,000 psychological level. If the bulls can see a breakout of the 4-hour equilibrium pattern they will most likely have enough strength to blast through the other 2 resistances and eye up $10,000 again.
Luckily for the bulls, the daily chart has formed very little resistance until $10,000 because of how violent and fast the crash was.
What are the technical indicators showing?
The daily RSI for Bitcoin is really close to the oversold zone, this usually indicates that a bounce is underway. The 12 and 26-period EMAs have crossed bearishly and BTC is trading way below both of them.
Most technical indicators are signaling to sell right now, the MACD is really bearish and most oscillators are also bearish. Pretty much all moving averages like the SMA, EMA or HMA are all showing a lot of bearish pressure on the daily time-frame.
Previous BTC analysis
At CoinCodex, we regularly publish price analysis articles focused on the top cryptocurrencies. Here’s 3 of our most recent articles about the price of Bitcoin:
