- Bitcoin price declined heavily and traded below the $9,000 support against the US Dollar.
- The price traded as low as $8,400 and it is currently correcting higher.
- There is a major bearish trend line forming with resistance near $9,405 on the 4-hours chart of the BTC/USD pair (data feed from Coinbase).
- The pair could correct higher towards $9,400 if it breaks the $9,000 resistance.
Bitcoin price is currently correcting higher above $8,800 against the US Dollar. BTC must surpass $9,000 to start a strong upward move towards $9,400 or even $9,500.
Bitcoin Price Analysis
This past week, we saw a downside extension in bitcoin price below the $9,200 support against the US Dollar. As a result, BTC declined below the $9,000 support and settled well below the 55 simple moving average (4-hours).
The price traded as low as $8,400 and it is currently correcting higher. It climbed above the $8,600 level, plus the 23.6% Fib retracement level of the key decline from the $10,029 high to $8,400 low.
The price also climbed above a major declining channel with resistance near the $8,650 level on the 4-hours chart of the BTC/USD pair. It has opened the doors for more gains above the $8,800 level.
On the upside, there are a few key hurdles visible near the $8,970 level and the 55 simple moving average (4-hours). A clear break above the $8,970 and $9,000 levels could clear the path for bitcoin bulls to take control in the near term.
The next major resistance is near the $9,215 level. It is the 50% Fib retracement level of the key decline from the $10,029 high to $8,400 low. There is also a major bearish trend line forming with resistance near $9,405 on the same chart.
Therefore, a clear break above the $9,000 level may perhaps set the pace for a push towards the $9,400 resistance area. Conversely, the price might fail to continue above the $9,000 level or the 55 simple moving average (4-hours). In the mentioned case, it could dive back towards the $8,400 support area.
Looking at the chart, bitcoin price is clearly showing a few positive signs of an upside correction above the $9,000 resistance level and the main target for the bulls might be $9,400.
Technical indicators
4 hours MACD – The MACD is now moving back into the bullish zone.
4 hours RSI (Relative Strength Index) – The RSI is now rising and it is just above the 50 level.
Key Support Levels – $8,700 and $8,400.
Key Resistance Levels – $8,970, $9,000 and $9,400.
