Bitcoin Price levels have dropped $2,000 within the last 48 hours as bears begin to shake the current bullish market sentiment. Continuation of the pull-back to key support around $8,800 is likely over the coming days.
Bitcoin 30-Minute Price Analysis
On the 30 minute chart for XBT/USD, we can see the sharp pullback that has taken place over the last 2-3 days. A clear influx of new volume has taken place throughout this pullback, initially bearish selling momentum that has now turned into a mixture of buyers and sellers. Price action was met with bitcoin buyers around $9,500 just above the 0.5 Fibonacci level indicating this is the predominant short-term support to look out for.
Strong support between $9,890 and $10,170 mentioned in my previous analysis has pulled price action back up to this level. It’s likely sideways consolidation will take place within this support range over the coming few days before a continuation of the pull-back, or a short-term trend reversal. Alternatively, price levels might rally up to $10,750 support essentially refuelling for a further pull-back and trapping buyers who think the short-term bitcoin trend has reversed.
RSI has clearly entered into the oversold region during this pull-back, taking the RSI momentum to the lowest point visible on the 30-minute chart. This means selling momentum will likely come to a halt over the coming days as momentum dies out. In order for bitcoin price levels to dump further without any form of sideways consolidation of brief rally upwards, there will need to be another large jump in selling pressure, which is unlikely.
1-Hour Price Analysis
On the 1 hour chart for XBT/USD, we can see the 200 EMA heading towards the 50 MA in a bearish fashion. It’s likely a bearish MA cross will occur over the coming 24-48 hours whilst price action goes into a short-term period of consolidation ahead of another drop. Another drop will create a lower low completing the descending channel on the daily. Three lower lows and three lower highs will be completed on the daily timeframe. Typically, descending channels that form as a result of a sharp up-trend are inherently bullish.
Key support levels to look out for if price levels continue downwards to create the third lower low as discussed as $9,130, $8,800 and finally $8,100. It’s important to note that if the final support at $8,100 is broken, the overall short-term sentiment will be no longer bullish and traders will likely be put-off entering into any long positions.
Do you think BTC will create a lower low in the coming weeks? Please leave your thoughts in the comments below!
This article is strictly for educational purposes and should not be construed as financial advice.
Images via Shutterstock, XBT/USD trading charts by Tradingview
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