Bitcoin attempt to rally is suffering a set back as the market faces resistance at $8,700 price level
The market may revisit the $8,100 demand zone if the downward move continued
A rally at $9,000 is possible the moment price breaches its initial resistance at $8,700 price level
Bitcoin Price: $8,516
Key Supply Zones: $10,000, $11,000, $12,000
Key Demand Zones: $8,000, $7,000, $6,000
Bitcoin (BTC) Price Analysis
BTC/USD Long term outlook: Bearish
In the last 48 hours, Bitcoin has been making an encouraging move to the previous highs. The market reaches a high of $8,700 but it is being resisted as the price fails to breach the resistance level. After three attempts at the resistance level, the market resumes its downward move. Bitcoin could have broken the initial resistance and rally above the $9,000 price level if there were more buyers at the higher price levels.
Nevertheless, the price action has earlier formed a bearish flag at the bottom of the chart. It was formed during the downward trend and it is a continuation pattern. Presently, the market is falling towards the lower boundary of the bear flag. When the price continues its downward move and breaks the lower boundary of the bear flag, the market is likely to fall in continuation of the prevailing trend.
Bitcoin Daily Chart indicator Reading
The swing low of the Fibonacci tool is on July 15, while the swing high is on July 9. In August, during the upward correction, a bullish candlestick body tested the 0.382 Fibonacci retracement level. This gives us the impression that the market is likely to fall to the 1.618 Fibonacci extension level.
Besides, the Relative Strength Index period 14 levels 43 indicate that price is in a range bound zone. Presently, the market is falling and approaching the lower boundary of the bear flag. A breakdown of the lower channel line is a sign of further depreciation of Bitcoin.
The supply level at $9,000 may not likely to be reached because of the formation of a bearish flag. The downward trend may likely continue if the lower channel line of the bear flag is broken. The bear flag is a continuation pattern that may likely follow the prevailing trend once the bearish trend resumes.