Over the last 7 days Bitcoin price has plunged from highs of $13,200 to the current market price at $9,300. This drop has resulted in a clear descending channel forming on intra-minute timeframes. Current market price sits at visible range lows, so the question remains as to whether bears have enough control of the market to break the strong support around $9,000?
Bitcoin Price Analysis 30 Minute Chart
On the 30 Minute chart for BTC we can see the newly formed descending channel that price levels have dropped to over the last week. Large selling volume has occurred throughout all stages of the channel with very little response from bullish traders. Key support that will be a crucial level in terms of gauging whether BTC will drop much further or not, is at $8,800.
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The support line for the channel seems to be very strong which is evident by the numerous re-tests. Right now, Bitcoin price 00 is re-testing support again and will require an extremely large amount of selling pressure to break. Because of this, it’s likely that BTC will experience of a periodic sideways movement around $9,000 support in the short-term.
Certain high volume altcoins have begun to surge upwards within the last 24 Hours as BTC continues its descent. The future of altcoins is still very much uncertain and presents a great risk, however, it’s important to monitor the correlation between BTC and altcoins for any potential trade opportunities or indications of future price movements.
Bitcoin Analysis 4 Hour Chart
On the 4 Hour chart, we can clearly see BTC has painted a lower high and a lower low during this pull-back but volume remains high. If price levels bounce around market price and don’t fall below $8,800 the trading range will still be in-tact, and the bullish uptrend mentioned in my previous analysis will likely continue to play out.
I’ll be watching closely for a breakthrough the overhead resistance visible on both the 4 Hour analysis and 30 Minute analysis around $9,600. Providing a clear influx of new volume occurs in conjunction with the breakout. price levels will likely move quickly back towards POC (Point of Control) sitting at $11,380.
Overall, the general consensus remains bullish until the key support at $8,800 is broken. In my previous analysis, I highlighted all of the key support areas to look out for if $8,800 is broken.
Do you think BTC will drop below $8,800 in the coming days or is a short-term reversal on the cards? Please leave your thoughts in the comments below!
Images courtesy of Tradingview, Shutterstock
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