Bitcoin started a major decline after it broke the $ 9,500 support against the U.S. dollar. BTC is now trading below $ 9,000 and remains at risk of further losses below $ 8,800.
- Bitcoin is gaining bearish momentum below the $ 9,500 and $ 9,200 support levels.
- The price was trading as low as $ 8,813 and is currently correcting higher.
- A crucial downtrend line is forming with resistance near $ 9,100 on the 4-hour chart of the BTC / USD pair (data from Kraken).
- The pair could correct higher, but it is likely to struggle near $ 9,100 and $ 9,300.
Bitcoin turns bearish
Last week, Bitcoin started a major decline after it broke the $ 9,500 support against the US dollar. BTC gained bearish momentum below the $ 9,300 support level and 100 simple moving average (4 hours).
It opened the doors for more losses and even the price broke the $ 9,000 support. A new monthly low near $ 8,813 forms and the price is correcting higher. Initial resistance is near the $ 9,000 and $ 9,040 levels.
The 23.6% Fib retracement level of the retracement from the $ 9,778 high to $ 8,813 low is also near the $ 9,040 level. More importantly, a crucial downtrend line is forming with resistance near $ 9,100 on the 4-hour chart of the BTC / USD pair.
Bitcoin price dives below $9,000: Source: TradingView.com
If bitcoin’s price breaks trend line resistance, it could continue to rally towards the main resistance at $ 9,300. The 100 simple moving average (4 hours) is also waiting near the resistance area of $ 9,300.
Therefore, the bulls are likely to face many obstacles near the $ 9,100 and $ 9,300 levels. To move into a positive zone, the price must be set above $ 9,300 and the 100 SMA.
More losses in BTC?
If Bitcoin has a hard time removing the $ 9,100 and $ 9,300 resistance levels, there is a risk of further losses. Initial support is near the low of $ 8,813 and $ 8,800.
A successful bearish break below the $ 8,800 support zone could open the doors for a further decline. In the aforementioned case, the bears are likely to target a test of the $ 8,500 support level in the near term.
Technical indicators
4-hour MACD: The MACD for BTC / USD is picking up pace in the bearish zone.
4 hours RSI (Relative Strength Index): The RSI for BTC / USD is currently well below the 40 level.
Major Support Level – $ 8,800
Major Resistance Level – $ 9,300
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