Bitcoin (BTC) Price Showing Signs of Additional Weakness
- Bitcoin price failed to rebound above $8,300 and extended its decline against the US Dollar.
- The price is trading below the $8,200 level and recently it declined towards the $8,050 level.
- There is a key declining channel forming with resistance near $8,350 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The price remains at a risk of more losses as long as it is trading below $8,400 and $8,500.
Bitcoin price is showing signs of additional weakness below $8,200 against the US Dollar. BTC could accelerate decline if it continues to struggle near $8,400.
Bitcoin Price Analysis
Yesterday, we discussed the chances of a possible rebound in bitcoin if it breaks the $8,400 resistance against the US Dollar. However, BTC price struggled to climb above the $8,400 resistance area. As a result, there was a fresh decline below the $8,300 level. Moreover, there was a break below the key $8,200 support area and the 100 hourly simple moving average.
Finally, the price traded below the $8,100 level and formed a new weekly low near $8,062. It is currently consolidating losses above the $8,100 level. Besides, it traded above the 23.6% Fib retracement level of the recent decline from the $8,386 high to $8,062 low. An immediate resistance is near the $8,200 level (the recent key support). The next resistance is near the $8,220 level and the 50% Fib retracement level of the recent decline from the $8,386 high to $8,062 low.
However, the main resistance for bitcoin is near the $8,300 level and the 100 hourly SMA. Furthermore, there is a key declining channel forming with resistance near $8,350 on the hourly chart of the BTC/USD pair. Therefore, a successful break above the channel resistance and a follow through above $8,400 is must for a decent recovery in the near term.
On the downside, there are not many supports up to $8,000. If the bears gain strength, they may perhaps succeed in clearing the $8,000 support area. The next major support is near the $7,800 level, below which the price is likely to head towards the $7,500 zone.
Looking at the chart, bitcoin is clearing struggling to recover above the $8,400 level. If the bulls continue to struggle, there is a risk of a bearish reaction below the $8,050 and $8,000 levels. In the mentioned case, the price could even struggle to stay above the $7,800 support area.
Technical indicators:
Hourly MACD – The MACD is struggling to gain strength in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now well below the 40 level.
Major Support Levels – $8,000 followed by $7,800.
Major Resistance Levels – $8,350, $8,400 and $8,500.
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Aayush Jindal, Khareem Sudlow