Bitcoin

Bitcoin Dives To Key Support: Here’s Why BTC Could Extend Losses

Bitcoin price failed to stay above the $ 10,750 support and declined sharply against the US Dollar. BTC is holding the $ 10,200 support, but there is a risk of more downsides.

  • Bitcoin is down 5% and it broke the $ 10,750 and $ 10,550 support levels.
  • The price is holding the $ 10,300 region, but it is well below the 100 hourly simple moving average.
  • There is a major contracting triangle forming with resistance near $ 10,470 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair could correct higher, but the $ 10,550 zone is now likely to act as a strong resistance.

Bitcoin Price Dives 5%

After a couple of failed attempts near $ 11,000, bitcoin price started a fresh decline against the US Dollar. BTC broke the $ 10,750 support level to start a substantial decline.

There was also a break below the key $ 10,550 support and the 100 hourly simple moving average. The price traded close to the $ 10,200 support and a low is formed near $ 10,302. Bitcoin is currently correcting higher and trading above the $ 10,400 level.

There was a break above the 23.6% Fib retracement level of the recent dive from the $ 10,989 high to $ 10,302 low. It seems like there is a major contracting triangle forming with resistance near $ 10,470 on the hourly chart of the BTC/USD pair.

Bitcoin Price

Bitcoin price dives below $  10,555. Source: TradingView.com

If there is an upside break, the price could test the $ 10,550 resistance (support turned resistance). The next major resistance is near the $ 10645 level since it is close to the 50% Fib retracement level of the recent dive from the $ 10,989 high to $ 10,302 low. The main resistance is now near the $ 10,800 zone and the 100 hourly simple moving average.

Risk of More Losses in BTC?

If bitcoin fails to recover above the $ 10,550 and $ 10,650 levels, there is a risk of more losses. An initial support is near the recent low and $ 10,300.

The main support on the downside is near the $ 10,200 zone, where the bulls might take a strong stand. However, if the current bearish pressure remains intact, there could be a sharp decline below $ 10,200 and $ 10,000.

Technical indicators:

Hourly MACD – The MACD is slowly moving in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is recovering and approaching the 40 level.

Major Support Levels – $ 10,300, followed by $ 10,200.

Major Resistance Levels – $ 10,550, $ 10,645 and $ 10,800.

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