Bitcoin Price Analysis: Tests Lateral Resistance Near $8,800

Bitcoin is currently priced at $8,764 on Bitstamp. The digital currency tested resistance at $8,793 a few minutes ago. Bitcoin had reversed lower from that level on Jan. 22.

A move through $8,793 would shift the focus to the 200DMA at $9,000, above which a major resistance is seen at $9,188 (recent high).

On the downside, support is seen at $8,530 (double bottom neckline), under which the offered tone around the cryptocurrency will likely strengthen, bringing a re-test of levels below $8,300.

Sellers failed multiple times over the weekend to keep prices below $8,300. That level. therefore, is a threshold to beat for the sellers.

1H chart

The current 1H candle is carrying a long upper shadow – a sign of ebbing bullish momentum.

That alongside RSI’s bearish divergence indicates scope for a drop to immediate support at $8,678. A break lower would expose support at $8,530.