The latest Bitcoin news show that the price of the dominant coin broke the $9,500 support against the US dollar which was when it started trading downwards and even went below $9,000 at one point. A major BTC decline is what we are seeing now, and there is a risk of more losses below $8,800 if the Bitcoin downtrend continues.
In fact, the past week’s decline was what opened the doors for more losses and how the price of the coin broke the $9,000 support. We could spot a monthly low being formed near $8,813 and the price is currently correcting higher.
In this manner, the initial resistance is near the $9,000 and $9,040 levels. The 23.6% Fib retracement level of the downward move from the $9,778 high to a $8,813 low is also near the $9,040 level. More importantly, there is a crucial bearish trend line which formed with resistance near $9,100 on the 4-hour chart of the BTC/USD pair.
If the major BTC decline continues and the price of the dominant coin breaks the trend line resistance, it could continue to recover towards the main $9,300 resistance. The 100 simple moving average (on 4 hours) is also waiting near the $9,300 resistance area.
Therefore, the bulls are now likely to face a lot of hurdles near the $9,100 and $9,300 levels. In order to move into a positive zone, the price must settle above $9,300 and the 100 SMA. If the price of the cryptocurrency struggles to clear $9,100 and $9,300 in the short term, it could continue the major BTC decline that we are seeing and the bears are likely to aim a test of the $8,500 support level in the near term if the Bitcoin downtrend continues.
A successful bearish break below the $8,800 support zone could open the doors for a larger decline. In this mentioned case, the bears are likely to aim a test of the $8,500 support level. On a positive note, some traders believe that $9,300 is a level to watch out on the upside, after which BTC could rush to $9,500 if bullish momentum occurs. The technical indicators for BTC in the cryptocurrency news now show the following:
- 4 hours MACD – The MACD for BTC/USD is starting to gain pace in the bearish zone.
- 4 hours RSI (Relative Strength Index) – The RSI for BTC/USD is now well below the 40 level.
- Major Support Level – $8,800
- Major Resistance Level – $9,300
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