Bitcoin Price (BTC) Tumbles 15%: $8,880 Bearish Target In Sight

  • Bitcoin price failed to stay above the $ 11,000 level and resumed decline against the US Dollar.
  • The price traded below the key $ 10,000 and $ 9,800 support levels to enter a bearish zone.
  • There is a new connecting bearish trend line forming with resistance near $ 10,060 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The price remains at a risk of more losses below the $ 9,200 and $ 9,000 support levels in the near term.

Bitcoin price tumbled around 15% and broke the $ 9,500 level against the US Dollar. BTC remains at a risk of more losses and it seems like the $ 8,800 bearish target is still in sight.

Bitcoin Price Analysis

This week, we saw a major decline in bitcoin price below the $ 10,500 support against the US Dollar. The BTC/USD pair found support near $ 9,800 and yesterday corrected higher. It climbed above the $ 10,500 level, but struggled to gain momentum above the $ 11,000 level. A top was formed near the $ 11,100 level and the 100 hourly simple moving average. As a result, the price started a fresh decline below the $ 10,500 support level.

The decline was such that the price broke the $ 10,000 and $ 9,800 support levels. Moreover, the price declined close to 15% and traded as low as $ 9,257. It is currently consolidating above $ 9,300 and it might correct higher. An immediate resistance is near the $ 9,680 level plus the 23.6% Fib retracement level of the recent drop from the $ 11,063 high to $ 9,257 low. However, the main resistance is near the $ 10,000 and $ 10,100 levels.

Moreover, there is a new connecting bearish trend line forming with resistance near $ 10,060 on the hourly chart of the BTC/USD pair. The 50% Fib retracement level of the recent drop from the $ 11,063 high to $ 9,257 low is also near the $ 10,160 level to act as a strong resistance. Therefore, an upside recovery above the $ 9,650 level is likely to face a strong resistance near the $ 10,000 and $ 10,100 levels.

Conversely, if there is no recovery above $ 9,650 or $ 10,000, the price could continue to decline. An immediate support is near the $ 9,200 level, below which it could even break the $ 9,000 support zone. The main target could be $ 8,880 (as discussed in the weekly forecast when the price was well above $ 10,500).

Bitcoin Price Analysis BTC Chart

Looking at the chart, bitcoin price is struggling below $ 10,000 and it could continue to weaken. However, once the current correction is complete near $ 8,880 or $ 8,800, the price may stage a decent recovery.

Technical indicators:

Hourly MACD – The MACD is about to move back in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is likely to correct higher towards the 40 level.

Major Support Levels – $ 9,200 followed by $ 9,000.

Major Resistance Levels – $ 9,650, $ 9,800 and $ 10,000.

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Analysis – NewsBTC

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