- Bitcoin price is currently consolidating losses above the $7,600 and $7,800 levels against the US Dollar.
- The price is facing a lot of hurdles near the $8,500 and $8,800 levels on the upside.
- There are two key bearish trend lines forming with resistance near $8,420 and $8,850 on the 4-hours chart of the BTC/USD pair (data feed from Coinbase).
- The pair is likely to struggle in clearing the $8,420 and $8,500 resistance levels in the near term.
Bitcoin price is trading in a bearish zone below $9,000 against the US Dollar. BTC could attempt to surpass the key $8,500 and $8,600 resistance levels.
Bitcoin Price Analysis
This past week, bitcoin price extended its decline below the $9,000 support against the US Dollar. The BTC/USD pair even broke the $8,500 support and settled well below the 55 simple moving average (4-hours). Finally, there was a break below $8,000 and the price traded to a new monthly low near $7,699. Recently, the price started an upside correction above the $8,000 resistance area.
Moreover, the price traded above the $8,200 and $8,300 levels. There was also a break above the 23.6% Fib retracement level of the crucial decline from the $10,380 high to $7,669 low. However, the price faced a strong resistance near the $8,500 level and the 55 simple moving average (4-hours). Additionally, there are two key bearish trend lines forming with resistance near $8,420 and $8,850 on the 4-hours chart of the BTC/USD pair.
Above the first trend line, the next important resistance is near the $8,800 and $9,000 levels. The 50% Fib retracement level of the crucial decline from the $10,380 high to $7,669 low is also close to the $9,000 level to act as a hurdle for the bulls. Therefore, an upward move above the $8,500 level may perhaps face a strong resistance near the $8,800 and $9,000 levels.
If the price fails to continue higher, it could correct lower towards the $8,000 level. If there is a downside break below the $8,000 support, the price is likely to retest the $7,700 area. Any further losses may perhaps drift the price towards the $7,500 and $7,450 levels in the near term.
Looking at the chart, bitcoin price is clearly facing a lot of hurdles near the $8,420 level and the 55 simple moving average (4-hours). A successful close above the 55 SMA could start an extended correction towards the $9,000 resistance area.
4 hour MACD – The MACD is losing momentum in the bullish zone.
4 hour RSI (Relative Strength Index) – The RSI is currently declining and is just below the 50 level.
Key Support Levels – $8,000 and $7,700.
Key Resistance Levels – $8,420, $8,800 and $9,000.