Bitcoin Faces Another Rejection And It’s Vulnerable to a Drop Below $9K
Bitcoin was rejected once again near the $9,300 resistance against the US Dollar. BTC is currently recovering, but it remains at a risk of more downsides below $9,000.
- Bitcoin topped near $9,302 and declined more than $300 in the past few hours.
- The price is now trading well below $9,200 and the 100 hourly simple moving average.
- There was a break below a crucial bullish trend line with support at $9,185 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair is likely to fail again near $9,200 and it could continue to move down below $9,000.
Bitcoin Price Turns Red
After yet another failure near $9,300, bitcoin started a sharp decline against the US Dollar. BTC broke the $9,200 support and the 100 hourly simple moving average to move into a bearish zone.
There was a sharp decline below the $9,100 and $9,080 levels. More importantly, there was a break below a crucial bullish trend line with support at $9,185 on the hourly chart of the BTC/USD pair.
The pair even broke the $9,000 level and traded as low as $8,933. It is currently correcting higher above the $9,000 pivot level. There was a break above the 23.6% Fib retracement level of the recent decline from the $9,302 high to $8,933 low.
Bitcoin price traded below $9,200: Source: TradingView.com
BTC is currently trading near $9,100 and facing hurdles near the $9,200 level. It seems like the 50% Fib retracement level of the recent decline from the $9,302 high to $8,933 low is acting as a resistance.
The first major resistance is near the $9,160 level and the 100 hourly SMA. The next hurdle is near the $9,200 level and a connecting bearish trend line on the same chart. If there is an upside break above $9,160 and $9,200, the price could revisit the main $9,300 resistance level.
More Losses in BTC?
It seems like bitcoin price is likely to face a strong resistance near $9,160 and $9,200. If it fails to recover above $9,200, there are chances of another bearish wave.
An initial support is near the $9,000 pivot level. A daily close below the $9,000 level could open the doors for a larger decline towards the $8,800 support or $8,500 in the near term.
Technical indicators:
Hourly MACD – The MACD is slowly moving back into the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently just above the 40 level.
Major Support Levels – $9,000, followed by $8,800.
Major Resistance Levels – $9,160, $9,200 and $9,300.
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Aayush Jindal, Khareem Sudlow