Currently, Bitcoin is correcting higher from the $ 8,813 low against the US dollar. BTC is trading above $ 9,000, but faces many hurdles near $ 9,200 and $ 9,300.
- Bitcoin started an upside correction after trading at a new monthly low of $ 8,813.
- The price is recovering well and is trading above the $ 9,000 level.
- A key bearish trend line is forming with resistance near $ 9,260 on the hourly chart of the BTC / USD pair (data from Kraken).
- The pair could start a further decline if it fails to settle above $ 9,200 and $ 9,300.
Bitcoin price nears obstacles
After a sharp decline below $ 9,000, the bitcoin price found support near the $ 8,800 level against the US dollar. BTC traded to a new monthly low of $ 8,813 and recently started an upside correction.
There was a break above the $ 9,000 resistance level. The bulls even pushed the price above a connecting downtrend line that formed with resistance near $ 9,100 on the hourly chart of the BTC / USD pair.
However, the pair faces resistance near $ 9,200 and the 100 hourly simple moving average. A maximum is formed near $ 9,190 and the price is currently trading in a range. An initial support is close to the 23.6% Fibonacci retracement level of the recent recovery from the $ 8,813 low to $ 9,190 low.
Bitcoin price back above $9,000: Source: TradingView.com
On the upside, an initial resistance is near the $ 9,150 level and the 100 hourly simple moving average. A key bearish trend line is also forming with resistance near $ 9,260 on the same chart.
The main resistance is still near the $ 9,300 level, above which the bitcoin price is likely to gain bullish momentum in the coming sessions. The next crucial resistance above $ 9,300 could be $ 9,500.
New drop in BTC
If Bitcoin fails to break the $ 9,200 and $ 9,300 resistance levels, a further decline could begin. Key first support is near the $ 9,040 level, followed by the Fibonacci 50% retracement level of the recent recovery from the $ 8,813 low to $ 9,190 low.
A successful bearish breakout and a close below $ 9,000 could start a further decline. In the bearish case mentioned, the price is likely to revisit the $ 8,813 low of $ 8,000 anytime soon.
Technical indicators:
Hourly MACD – MACD moves slowly in the bearish zone.
Hourly Relative Strength Index (RSI): The RSI for BTC / USD is just above the 50 level.
Main support levels: $ 9,040, followed by $ 9,000.
Major resistance levels: $ 9,150, $ 9,200 and $ 9,300.
