Do or Die For Bitcoin Bulls: Here’s What Could Trigger A Sharp Decline
Bitcoin price struggled to gain momentum above $10,400 against the US Dollar. BTC is currently trading near the $10,000 support and remains at a risk of a sharp decline.
- Bitcoin is currently struggling to stay above the $10,000 and $9,900 support levels.
- The price is now facing a major hurdle near $10,200 and the 100 hourly simple moving average.
- There is a new declining channel forming with resistance near $10,150 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could decline heavily if it settles below the recent swing low at $9,860.
Bitcoin Price Remains At Risk
Yesterday, we saw a few positive signs above $10,200 for bitcoin price against the US Dollar. However, BTC struggled to gain bullish momentum above the $10,300 and $10,400 levels.
It declined below the $10,200 support and settled below the 100 hourly simple moving average. It is now struggling to stay above the $10,000 and $9,900 support levels. An initial resistance on the upside is near the $10,120 level.
The 50% Fib retracement level of the recent decline from the $10,419 high to $9,855 low is also acting as a resistance. More importantly, there is a new declining channel forming with resistance near $10,150 on the hourly chart of the BTC/USD pair.
Bitcoin price trades near $10,000. Source: TradingView.com
The main resistance is near the $10,200 level and the 100 hourly SMA. It coincides with the 61.8% Fib retracement level of the recent decline from the $10,419 high to $9,855 low.
To avoid a sharp decline, the price must break the channel resistance and then gain strength above the $10,200 level. The next major resistance is near the $10,400 level, above which the bulls might attempt a clear break above the $10,500 resistance.
Sharp Decline in BTC?
If bitcoin fails to clear the $10,200 resistance, there is a risk of a massive decline. The main breakdown support is near the $9,900 and $9,850 levels.
A close below the $9,850 support could start a sharp decline. In the stated case, the price might decline heavily towards the $9,500 and $9,200 in the near term.
Technical indicators:
Hourly MACD – The MACD is struggling to gain momentum in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently just above the 40 level.
Major Support Levels – $9,900, followed by $9,850.
Major Resistance Levels – $10,150, $10,200 and $10,400.
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Aayush Jindal, Khareem Sudlow