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

Bitcoin-BTC-20-Week-Moving-Average

  • 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.

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