Bitcoin Price Breaks Rising Channel Support: How Far Will The Consolidation Above $8,600 Go?


Bitcoin-BTC-20-Week-Moving-Average
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Bitcoin Price Breaks Rising Channel Support: How Far Will The Consolidation Above $8,600 Go?

  • Bitcoin settles between $8,600 and $8,750 as bulls lick the wounds from the fall at $9,200.
  • If the support at $8,600 fails to hold, the ongoing consolidation could end up in declines towards $8,000.

Bitcoin continues to the bullish action from January 14 in an interesting surge above $9,000. There was an attempt to break above the rising channel resistance at $9,200. However, selling activity increased significantly, pushing Bitcoin to levels under $9,000.

Several support levels failed to shield Bitcoin from the declines, paving the way for bearish action that tested the support at $8,500. While recovery has not been forthcoming on Monday, BTC/USD has stepped above $8,600. The upside is facing growing resistance at $8,750, in other words, it will take buyers a lot of effort to rise towards $8,800 (confluence formed by the 50 MA and the 100 MA on the 1-hour chart).

BTC/USD 1-hour chart

BTC/USD price chart
BTC/USD price chart by Tradingview

From a technical perspective, the ongoing consolidation between $8,600 and $8,750 is likely to culminate in declines. For instance, the 50 MA double-cross under the 100 MA suggests that bears are increasing their activity. In addition to that, the Relative Strength Index recovery fizzled out at 40. Besides, the indicator’s trend has a bearish tone to it, which could further increase the sellers’ presence on the market.

It is vital that the bulls continue to nurse the wounds above $8,600. Because, if the support at $8,500 is broken, BTC could dive towards $8,250 and even test the $8,000 level. On the other hand, a return above $9,000 will depend on the bulls’ ability to retake the position above $8,000, as well as the channel support at $9,000.

Bitcoin Key Levels To Watch

Spot rate: $8,619

Relative change: -78

Percentage change: -0.90%

RSI: Downward slopping, hints more breakdown.

Moving Averages: Double-cross hints increased bearish action.

Author: John Isige
John is a talented writer with over two years of experience actively contributing to the cryptocurrency industry by providing credible, interesting and easy to read the content. His main focus is on cryptocurrency price analysis and industry news coverage. Lets follow him on Twitter at @jjisige
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John Isige 709 Articles
John is a talented writer with over two years of experience actively contributing to the cryptocurrency industry by providing credible, interesting and easy to read the content. His main focus is on cryptocurrency price analysis and industry news coverage. Lets follow him on Twitter at @jjisige
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