Bitcoin retesting the Channel Support at $8250 area as the Bearish trend continues to push lower. Despite Bullish trend in place, the Bears may regain momentum. Let’s check Bitcoin Technical Analysis for more levels and insights.
January 24, 2020 | AtoZMarkets.com – Bitcoin has been under pressure since it rejected off the $9000 price area. The price pushed lower consistently around $750 pips and may sustain the Bearish pressure further. The Bullish Trend since the price bounced off $6500 area is still strong but struggling to regain momentum.
As per current price action, Bitcoin is expected to reach $8000 area soon. Yesterday, the price managed to break below the important Bitcoin support area of $8500. Currently the price is creating new weekly low near $8250 which indicates further bearish pressure is in the making.
Moreover, the founder of Bridgewater Associates Mr. Ray Dalio, stated that Bitcoin cannot serve as a money. Because, money has to be a medium of exchange and store hold of wealth which Bitcoin does not qualify for. The negative bias for Bitcoin has been in the financial world since it’s inception. But if any public figure like Ray Daio says negative about this crypto currency, we have seen the Bearish reaction.
Bitcoin to retest $8000
Bitcoin has been trying to break above $10,000 price area for a while now. The price gained impulsive Bullish momentum along the way but could not sustain it further. There has been many rejection off the resistances like $9000, $9500 and $10,000 area.
Currently Bitcoin is residing at the edge of a Falling Channel which it is retesting as support after breaking above it earlier. In the intraday chart, the dynamic levels like 20 EMA, Tenkan, Kijun and Kumo Cloud is residing above the price. Though the Kumo Cloud has managed to contain the price as support for a certain period, recently it failed.
image: Bitcoin 1 Hour Chart
According to 1 hour chart, the price has breached below the dynamic levels recently. The Chikou Span (Green Line) residing below the price line indicates further Bearish pressure in the making. Currently, there is no sign of strong Bullish Divergence in the process to inject certain Bullish momentum. Therefore, Bitcoin Bears may continue to push lower towards $8000 area before any strong bullish intervention is seen.
Bitcoin at Channel Support can move higher?
image: Bitcoin Daily Chart
According to Bitcoin Daily Chart, the price is currently being held byt the dynamic support and Channel Support. The Falling Channel resistance which was recently broken is expected to hold the price higher as support. The dynamic level 20 EMA, Tenkan and Kijun line is currently flat below the price area. Additionally, Bitcoin breaking above the Kumo Cloud and currently retesting it may hold the price higher.
To Conclude, if Bitcoin manages to remain above $8000 area with a daily close, then further upward momentum can be observed towards $9000. On the contrary, a Break below $8000 will lead to further Bearish Pressure in the coming days.