The latest cryptocurrency news show that we are in a Bitcoin bloody Monday, where the price of BTC is currently correcting and is in the $8,500 range. Even though this is not that bad of a correction, it is still a sharp downward move which could set a bearish traction in the days to come.
As of recently, the Bitcoin price slowly climbed above $8,400 and $8,500 to later break the $8,800 level and trade as higher as $8,842. Knowing that these numbers were gained hard, a correction like this in today’s Bitcoin bloody Monday shows that the bears showed signs of activity. However, the Fibonacci retracement level at 23.6% is supposedly going to act as a strong support.
Many best cryptocurrency news sites report that there is a key bullish trend line forming with support at $8,640 on the hourly chart of the Bitcoin BTC and USD pair. If there is a downside break below this trend line, the price could test the $8,600 support and the 100 hourly simple moving average. From this, the next important support will be near the $8,500 level. If there are more losses, the price could test the $8,400 support area and coincide with the 50% Fibonacci retracement level of the recent wave – from the $7,995 low to a new high at $8,842.
On the upside, the Bitcoin bloody Monday could be easily forgotten if there is an upside break above the $8,800 barrier as the day progresses. In this scenario, the price could accelerate above the $8,850 level where the next key resistances on the upside will be near the $8,900 and $9,000 levels. If there is a break above $9,000, the Bitcoin price is likely to gain a new pace and trigger the altcoins to post big movements in the altcoin news too.
When looking at the current chart, the Bitcoin price is consolidating its gains above the $8,600 level. In the short term, there could be a downside correction below $8,600 which is going to last. However, there are many supports on the downside near the $8,500 and $8,420 levels right now which is good. A successful close below $8,400, in that manner, will likely start a solid downward move towards the $8,100 level in the near term.
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