Bitcoin Analysis: $8000 reached, what's next?

Ben Hooda Best Online Bitcoin Brokers

Dear traders,

The trading analysis from last time has performed exactly as planned. The price of Bitcoin hesitated for a bit before extending the rally.

Price action traders were targeting the 8,000 level, which has been reached. Where is price going from here?

Bitcoin Analysis

In the image above, I have shown the 4-hour chart of the BTCUSD.

It looks like price has just touched the psychological level at 8,000. This level coincides with a previous high, as well. I have outlined in the red square the resistance zone that was formed on the 7th of November.

What can possibly happen from here?

Scenario 1

The first potential scenario is to see the price breaking out of the 8,000 level. To see that happen, we will need more bullish news or a clear price action setup to indicate the willingness of traders to go long.

Scenario 2

A second hypothetical scenario is to see the price rejecting the 8,000 level and forming a bearish pattern. If such a price action setup confirms my expectations, then we might see the price dropping down to the major support level at 5,600.

I would not be surprised to see even a larger drop if price rejects the 8,000 level.

Author

Ben Hooda

Best Online Bitcoin Brokers

I have worked as a prop trader in two of the leading prop trading houses in London. Currently an avid crypto trader, blogger and a mentor. Helping others achieve their goals is one of my top priorities!

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