Bitcoin Price (BTC) Remains Vulnerable Below $8,500
- Bitcoin price struggled to climb above $8,500 and declined recently against the US Dollar.
- The price is currently trading below $8,300 and it could continue to decline towards $8,100.
- There was a break below an ascending channel with support near $8,275 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The price could decline further towards the $8,100 or $8,000 support in the near term.
Bitcoin price is struggling to continue higher above $8,400 and $8,500 against the US Dollar. BTC must stay above $8,000 to start a fresh increase.
Bitcoin Price Analysis
Yesterday, there was a nice upside correction in bitcoin above the $8,200 resistance against the US Dollar. The BTC/USD even settled above $8,200 and the 100 hourly simple moving average. Moreover, the price surpassed the $8,400 resistance level. However, the bulls struggled near the key $8,500 resistance area. As a result, the price topped near the $8,540 level and recently started a downward move.
It broke the $8,400 support area, plus the 23.6% Fib retracement level of the last leg from the $7,653 low to $8,539 high. Moreover, there was a break below an ascending channel with support near $8,275 on the hourly chart of the BTC/USD pair. The pair tested the $8,200 support area and the 100 hourly simple moving average. If there are more downsides, the price could test the $8,100 support area.
Besides, the 50% Fib retracement level of the last leg from the $7,653 low to $8,539 high is also near the $8,100 level. Any further losses may perhaps drag the price towards the $8,000 handle. The 61.8% Fib retracement level of the last leg from the $7,653 low to $8,539 high is also near $7,992. If the price settles below $8,000, there could be additional losses towards the $7,500 support.
On the upside, an immediate resistance is near the $8,300 level. However, the bulls are likely to face a strong resistance near the $8,500 level. A clear break above the $8,500 level may perhaps push the price towards the key $8,750 resistance area.
Looking at the chart, bitcoin clearly failed to surpass the $8,500 resistance area and started a fresh decline. On the downside, the $8,100 and $8,000 supports are important. If the bulls fail to protect $8,000, the price is likely to resume its decline towards the $7,500 support area in the coming sessions.
Technical indicators:
Hourly MACD – The MACD is now back in the bearish zone, with negative signs.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently declining and it is now well below the 50 level.
Major Support Levels – $8,100 followed by $8,000.
Major Resistance Levels – $8,300, $8,400 and $8,500.
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Aayush Jindal, Khareem Sudlow