Bitcoin

Do or Die For Bitcoin Bulls: Here’s What Could Trigger Another Sharp Decline

Bitcoin started a sharp decline after it failed to continue higher above $ 9,800 against the US Dollar. BTC is currently testing the $ 9,200 support, below which it could decline further.

  • Bitcoin is down more than 4% and it broke the key $ 9,500 support level.
  • The price is trading near the $ 9,200 support and well below the 100 hourly simple moving average.
  • There is a short-term contracting triangle forming with support near $ 9,200 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair could either correct a few points or it might decline further below $ 9,000.

Bitcoin Price Nosedives 4%

Yesterday, bitcoin price struggled to clear the $ 9,700 and $ 9,800 resistance levels against the US Dollar. BTC topped just below the $ 9,800 level and recently started a sharp decline.

It broke the $ 9,540 and $ 9,500 support levels to move into a bearish zone. The bears took over the crypto market and the price tumbled below $ 9,300. There was also a close below the $ 9,300 level and the 100 hourly simple moving average.

Bitcoin tested the $ 9,200 support level and traded as low as $ 9,204. It is currently consolidating losses and trading in a range above the $ 9,200 support. It seems like there is a short-term contracting triangle forming with support near $ 9,200 on the hourly chart of the BTC/USD pair.

Bitcoin Price

Bitcoin price dives 4%: Source: TradingView.com

If there is an upside break above the triangle resistance at $ 9,280, the price could test the 23.6% Fib retracement level of the recent decline from the $ 9,662 swing high to $ 9,204 low.

The first major resistance is near the $ 9,400 level, followed by the 50% Fib retracement level of the recent decline from the $ 9,662 swing high to $ 9,204 low. To move into a positive zone, the price must surge above the $ 9,500 resistance zone and the 100 hourly simple moving average.

More Losses in BTC

On the downside, bitcoin is finding strong bids near the $ 9,200 support level. If the bulls fail to defend the $ 9,200 support, there could be another sharp decline in the near term.

The next major support is seen near the $ 9,000 level, below which the bears are likely to aim a test of the $ 8,800 support zone. Any further losses might call for a push towards $ 8,500.

Technical indicators:

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

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now well below the 40 level.

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

Major Resistance Levels – $ 9,300, $ 9,400 and $ 9,440.

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Bitcoin – NewsBTC

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