Bitcoin Price Analysis: Rejected at January 19 high

Bitcoin is falling fast, having failed to penetrate the resistance of the January 19 high of $9,188 a few minutes ago.

The most popular digital currency quickly retreated to $8,939 after facing rejection at $9,188 and is now trading at $9,000 on Bitstamp.

1H chart

The previous hourly candle carried a long upper shadow. That along side RSI’s bearish divergence is warning of ebbing bullish momentum and hinting a turn lower may be ahead.

The cryptocurrency looks set to test the double top support at $8,929. A violation there will likely accelerate the pullback and shift the focus to support at $8,793 and $8,726, which is the 50-hour average.

A strong bounce from there could yield a re-test of $9,000, above which bulls may target $9,188.