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Bitcoin Price Analysis: BTC Eyeing Downside Thrust Before Reversal

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  • Bitcoin price is declining and trading below the $9,000 level against the US Dollar.
  • It is currently showing bearish signs and it could slide further towards the $8,410 support.
  • There is a major contracting triangle forming with resistance near $8,900 on the 4-hours chart of the BTC/USD pair (data feed from Coinbase).
  • The pair could dive towards the $8,400 and $8,300 levels before it starts a decent increase.

Bitcoin price is currently trading in a bearish zone below $9,000 against the US Dollar. BTC remains at a risk of more losses towards $8,400 before it starts a fresh upward move.

Bitcoin Price Analysis

In the past few days, bitcoin price remained in a bearish zone below the $9,500 level against the US Dollar. BTC broke the main $9,200 support zone to move into a bearish zone.

The recent decline was such that the price even settled below the $9,000 level and the 55 simple moving average (4-hours). A new weekly low is formed near $8,639 and the price is currently consolidating losses.

It is trading above the $8,800 short term resistance. Besides, there was a break above the 23.6% Fib retracement level of the recent decline from the $9,312 high to $8,639 low. On the upside, the price seems to be facing hurdles near the $8,900 and $8,950 levels.

There is also a major contracting triangle forming with resistance near $8,900 on the 4-hours chart of the BTC/USD pair. The 50% Fib retracement level of the recent decline from the $9,312 high to $8,639 low is also near the $8,975 level to stop the upward move.

If bitcoin price manages to clear the triangle resistance and $9,000, it could correct higher towards the $9,200 resistance. The main resistance is near the $9,300 level and the 55 simple moving average (4-hours).

To move into a new uptrend and start a fresh increase, the price must break the $9,300 resistance and the 55 simple moving average (4-hours).

Conversely, the price may perhaps dive further below the $8,800 and $8,600 levels. The main support is near the $8,400 area, where the bulls are likely to take a stand. Any further losses could lead the price towards $8,250.

Bitcoin Price
Bitcoin Price

Looking at the chart, bitcoin price is clearly trading in a bearish zone below the $9,000 level. It seems like the price could dive towards the $8,400 and $8,300 levels before it starts a decent increase.

Technical indicators

4 hours MACD – The MACD is slowly losing pace in the bearish zone.

4 hours RSI (Relative Strength Index) – The RSI is currently just above the 40 level.

Key Support Levels – $8,800 and $8,400.

Key Resistance Levels – $8,900, $9,000 and $9,300.

Aayush Jindal
Aayush Jindal
Aayush has spent over seven years as a financial markets contributor and observer. He specializes in market strategies and technical analysis, comes with an IT background. He possess strong technical analytical skills and is well known for his entertaining and informative analysis of the currency and commodities markets. He is a software engineer by profession, loves blogging and observing financial markets.

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