Bitcoin extended its decline and spiked towards $9,100 against the US Dollar. BTC is currently recovering, but it must gain strength above $9,300 for a sustained upward move.
- Bitcoin spiked to the downside and traded to a new weekly low at $9,096.
- The price is currently trading above $9,200, but it is still facing a strong hurdle near $9,330.
- There is a key bearish trend line forming with resistance near $9,280 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair must gain strength above the $9,330 resistance for a sustained upward move.
Bitcoin Price is Trading Near Key Juncture
After another rejection near the $9,300 resistance, bitcoin started a fresh decline against the US Dollar. BTC broke the $9,200 support level and the 100 hourly simple moving average.
It spiked below the $9,120 support level, but downsides were limited below $9,100. A new weekly low is formed near $9,096 and the price recovered sharply above $9,100. It surpassed the $9,200 level and the 100 hourly simple moving average.
There was a break above the 50% Fib retracement level of the recent drop from the $9,333 high to $9,096 low. However, the price is still struggling to clear the $9,300 resistance zone.
Bitcoin price testing $9,250: Source: TradingView.com
There is also a key bearish trend line forming with resistance near $9,280 on the hourly chart of the BTC/USD pair. The trend line is close to the 76.4% Fib retracement level of the recent drop from the $9,333 high to $9,096 low.
The pair must gain bullish momentum above the trend line, $9,300 and $9,330 to start a sustained upward move. If the bulls succeed, the price is likely to surge towards the $9,500 and $9,550 levels in the near term.
Downside Break in BTC
If bitcoin price fails to continue higher above the trend line resistance or $9,300, it is likely to start another decline in the next 2-3 sessions. An immediate support is near the $9,200 level.
The main support is still near the $9,120 zone. If there is a proper close below the $9,120 support, the bears are likely to aim a larger decline below the $9,000 support in the near term. The next support could be $8,800 or $8,650.
Technical indicators:
Hourly MACD – The MACD is slowly moving into the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is struggling to stay above the 50 level.
Major Support Levels – $9,200, followed by $9,120.
Major Resistance Levels – $9,280, $9,300 and $9,330.