Bitcoin Price Analysis: Rally Rejected at Chart Barrier

Bitcoin hit a wall on an attempt to breach the psychological resistance of $8,200.

Prices tagged a 2.5-month high of $9,188 during the early US trading hours only to scurry all the way back to $8,463 (January 8 high), marking a strong rejection above the 200DMA.

That along with the violation of the 4H chart ascending trendline may be indicative of ebbing bullish momentum, which might in turn set the stage for a short-term reversal lower.

4H chart

The initial support is seen at $8,463 and a sustained break below that would bring $8,200 and $8,000 into the spotlight.

A reversal lower would be confirmed if prices settle below $8,463 over the next 24 hours.

Alternatively, securing a foothold above the trendline resistance would expose today’s high of $9,188.

If prices break above $9,000 and manage to hold above the psychological level for 24-hours, a move toward $9,400 could be seen. At the time of writing, the cryptocurrency is priced near $8,630 on major exchanges.