Analysis

Bitcoin Topside Bias Could Be Vulnerable Below $9,500 And 100 SMA

Bitcoin failed to climb above the $ 9,950 and $ 10,000 resistance levels against the US Dollar. BTC price is currently plunging and it is now vulnerable to more losses below $ 9,400.

  • Bitcoin is down more than 3% from the weekly high and it is now showing bearish signs.
  • The price is trading well below the $ 9,600 level and the 100 hourly simple moving average.
  • There was a break below a major contracting triangle with support near $ 9,600 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair remains at a risk of more losses below the $ 9,400 and $ 9,250 levels.

Bitcoin Showing Bearish Signs

Bitcoin price started a bearish wave after it failed to continue above the $ 9,950 and $ 10,000 resistance levels against the US Dollar. BTC price is down more than 3% from the weekly high and it broke the $ 9,540 support zone.

The recent decline was such that the price even broke the $ 9,400 level and settled below the 100 hourly simple moving average. More importantly, there was a break below a major contracting triangle with support near $ 9,600 on the hourly chart of the BTC/USD pair.

Bitcoin Price

Bitcoin Price

A low is formed near $ 9,308 and bitcoin price is currently correcting higher. It tested the 50% Fib retracement level of the recent decline from the $ 9,843 high to $ 9,309 low.

It seems like the previous supports near $ 9,540 and $ 9,600 are now acting as hurdles. The first major hurdles is near the $ 9,640 level and the 100 hourly simple moving average. The 61.8% Fib retracement level of the recent decline from the $ 9,843 high to $ 9,309 low is also at $ 9,639.

To avoid more losses, BTC price must move back above the $ 9,540 and $ 9,640 resistance levels. The next key hurdles on the upside remain $ 9,950 and $ 10,000.

More Losses?

If bitcoin fails to recover above the $ 9,540 and $ 9,640 resistance levels, there are chances of more losses in the near term. An immediate support is near the $ 9,400 level.

The main support is near the $ 9,250 zone (the last key pivot zone). If the bulls fail to defend the $ 9,250 support level, the price could continue to move down towards the $ 9,120 and $ 9,000 levels in the near term.

Technical indicators:

Hourly MACD – The MACD is slowly reducing its bearish slope, but there are many negative signs visible.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is sliding and it is well below the 50 level.

Major Support Levels – $ 9,400 followed by $ 9,250.

Major Resistance Levels – $ 9,640, $ 9,800 and $ 9,950.

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Analysis – NewsBTC

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