Bitcoin

Bitcoin Dives Below Key Uptrend Support: Here’s Why Bears Are Comfortable

Bitcoin started a major decline after it broke the $ 9,500 support against the US Dollar. BTC is now trading below $ 9,000 and it remains at a risk of more losses below $ 8,800.

  • Bitcoin is gaining bearish momentum below the $ 9,500 and $ 9,200 support levels.
  • The price traded as low as $ 8,813 and it is currently correcting higher.
  • There is a crucial bearish trend line forming with resistance near $ 9,100 on the 4-hours chart of the BTC/USD pair (data feed from Kraken).
  • The pair could correct higher, but it is likely to struggle near $ 9,100 and $ 9,300.

Bitcoin Turns Bearish

This past 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 the 100 simple moving average (4-hours).

It opened the doors for more losses and the price even broke the $ 9,000 support. A new monthly low is formed near $ 8,813 and the price is currently correcting higher. An initial resistance is near the $ 9,000 and $ 9,040 levels.

The 23.6% Fib retracement level of the downward move from the $ 9,778 high to $ 8,813 low is also near the $ 9,040 level. More importantly, there is a crucial bearish trend line forming with resistance near $ 9,100 on the 4-hours chart of the BTC/USD pair.

Bitcoin

Bitcoin price dives below $ 9,000: Source: TradingView.com

If bitcoin price breaks the trend line resistance, it could continue to recover towards the main $ 9,300 resistance. The 100 simple moving average (4-hours) is also waiting near the $ 9,300 resistance area.

Therefore, the bulls are likely to face a lot of hurdles near the $ 9,100 and $ 9,300 levels. To move into a positive zone, the price must settle above $ 9,300 and the 100 SMA.

More Losses in BTC?

If bitcoin struggles to clear the $ 9,100 and $ 9,300 resistance levels, there is a risk of more losses. An initial support is near the $ 8,813 low and $ 8,800.

A successful bearish break below the $ 8,800 support zone could open the doors for a larger decline. In the mentioned case, the bears are likely to aim a test of the $ 8,500 support level in the near term.

Technical indicators

4 hours MACD – The MACD for BTC/USD is gaining 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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Bitcoin – NewsBTC

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