Bitcoin started a downside correction after it was rejected near $9,500 against the US Dollar. BTC is now trading near the main $9,200 support and it could either start a fresh increase or dive to $9,000.
- Bitcoin is correcting lower and approaching the $9,200 and $9,180 support levels.
- The price is currently trading below the $9,280 pivot level and the 100 hourly simple moving average.
- There was a break below a crucial bullish trend line with support near $9,360 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair must stay above the $9,180-$9,200 support area to start a fresh increase.
Bitcoin Price Testing Key Support
After a decent upward move, bitcoin faced a strong resistance near $9,480 and $9,500 against the US Dollar. BTC traded as high as $9,480 and recently started a downside correction.
There was a break below the $9,400 and $9,300 levels. The price even broke the $9,280 pivot level and the 100 hourly simple moving average. There was also a break below the 23.6% Fib retracement level of the upward move from the $8,917 swing low to $9,480 high.
More importantly, there was a break below a crucial bullish trend line with support near $9,360 on the hourly chart of the BTC/USD pair. The pair is now trading near the $9,200 and $9,180 support levels.
Bitcoin price testing $9,200: Source: TradingView.com
The 50% Fib retracement level of the upward move from the $8,917 swing low to $9,480 high is also acting as a strong support. It seems like the price is trading near a major inflection zone at $9,180. If it stays above the $9,180 support, it could start a fresh increase in the coming sessions.
On the upside, an initial resistance is near the $9,280 level and the 100 hourly SMA. A successful close above the $9,280 level might open the doors for a push towards the $9,400 and $9,500 levels.
Bearish Break in BTC
Conversely, there is a risk of a bearish break below the $9,200 and $9,180 support levels. If bitcoin closes below the $9,180 level, it could continue to move down.
The next major support is near the $9,000 level, where the bulls are likely to appear. Any further losses might lead the price towards the $8,800 level.
Technical indicators:
Hourly MACD – The MACD is about to move back into the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently well below the 40 level.
Major Support Levels – $9,180, followed by $9,000.
Major Resistance Levels – $9,280, $9,400 and $9,500.