Bitcoin (BTC) bears took their pound of flesh last Wednesday. However, was this just a long-overdue correction that was needed for Bitcoin to continue to rally to fresh highs?

Today I'm going to look at the two scenarios that could play out next week.

Daily crypto market performance

Daily crypto market performance. Source: Coin360.com

The bearish scenario for Bitcoin price

BTC USD daily chart

BTC USD daily nautical chart. Source: TradingView

It was a devastating blow for bulls final week on Wed, Feb. nineteen, equally Bitcoin vicious by approximately 10% in a single hourly candle. However as tin exist seen in the nautical chart to a higher place, this aqueduct had already been invalidated two candles prior, and what followed next is what seems to be a blatant display of whale flexing designed to exit both left both longs and shorts completely rekt.

This leaves Bitcoin in the early stages of a descending channel, which could see the leading digital asset retrace to $7,500 over the next two-3 weeks. So right now, it'due south important for Bitcoin to pause out of this channel to repossess a bullish trend.

The resistance here is $9,900 (which is what the toll is currently at) and the support is $8,950. Withal, what if the original ascending channel wasn't valid?

The bullish scenario for Bitcoin toll

BTC USD daily hourly

BTC USD daily hourly. Source: TradingView

The bull in me wants to believe that the low we hitting last Wednesday of around $9,250 has opened up the possibility of a slightly wider ascending aqueduct, one that now sees support at $9,500 and resistance at $ten,300 and then $11,085.

Annoyingly since the CME closed at $9,740 on Friday, both channels would remain valid in the highly probable event of the gap-filling in the week ahead.

As such, a glance at some key indicators can perhaps requite some insight as to what nosotros can wait.

The Relative Strength Index (RSI) indicator is neutral

BTC USD daily hourly

BTC USD daily hourly. Source: TradingView

The Relative Forcefulness Alphabetize (RSI) Indicator remains remarkably neutral, with a reading of 56.07 on the daily. However, it did prove Bitcoin as being massively overbought in the days leading up the selloff.

Bitcoin bounced off fifty.xvi on February. 20 and changed its trajectory from heading to oversold support towards the overbought range. Notwithstanding, information technology'south as well early to tell, but this could still go either way right now, and the weekly view of the RSI is very much the aforementioned.

The MACD is showing early on signs of a bullish reversal

BTC USD daily hourly

BTC USD daily hourly. Source: TradingView

The Moving Average Divergence Convergence (MACD) is slowly starting to compression upward, this is an early sign that we are going from surly to bullish. This is further echoed by the stake pink candle on the histogram.

This tin can too be interpreted every bit bearish to an extent. However, the weekly MACD is still in total bullish flow, and past performance of Bitcoin when the MACD has crossed bullish on the 1-week nautical chart has typically led to several months of price increase, while as well keeping in mind that we're only one month in.

Which leaves one terminal indicator that seems to take been impacting the toll lately.

Mining difficulty in turn down

BTC mining difficulty

BTC mining difficulty. Source: BTC.com

Side by side week, the mining difficulty is set to be around -1%, the first expected drop this year.

Given that the price has increased around the same fourth dimension the difficulty has gone up, it would signal that the week ahead is unlikely to be bullish or bearish, but rather quite a neutral calendar week of sideways action.

Summary

The calendar week ahead for Bitcoin looks to be rather neutral. As a trader, I'g looking for confirmation of the bullish or bearish scenarios laid out in today'southward analysis.

Should $ix,500 fail to concord equally support, and so I'll be looking at the surly scenario, which shows the adjacent level of support at $8,950.

Should $9,500 serve as support, I'll be looking for a daily close above $9,900 before assuming the bull trend has resumed. From here I'll be looking at $10,300 equally primal resistance, with the breakout resistance beingness above $xi,085.

The views and opinions expressed here are solely those of @officiallykeith and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves gamble. Y'all should acquit your own research when making a decision.