After touching the significant 200-days moving average line at $9,060, Bitcoin quickly got rejected down to $8400. From there, the cryptocurrency had a three-day consolidation around $8600; however, after breaking it down, the bearish momentum had recorded $8200 as the weekly low.
Coincidence? When looking at the following 4-hour chart, we can see that the past month’s price move is reflected on the marked ascending channel accurately, whereas the $8200 is the lower boundary of the channel.
Bitcoin found support there, along with the 38.2% Fibonacci retracement level from the daily chart (~$8300). As of writing these lines, Bitcoin is slightly making its pace above, currently dealing with the support turned resistance level of $8400 – $8460 (as a reminder the last was the low of the past week, which was tested four times before got broken down).
Keep in mind that it’s still the weekend, and it’s also the Chinese New Year. As we mentioned before, the holiday tends to be bearish for Bitcoin.
With some caution, as mentioned here in the latest price analysis, the correction is so far healthy, as long as Bitcoin respects the marked ascending channel. Read More...