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Bitcoin Price Analysis: BTC Trend Turns Significantly Bearish

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  • Bitcoin price is declining and trading well below the $8,380 pivot zone against the US Dollar.
  • The price is consolidating near the $8,000 and facing a lot of hurdles on the upside.
  • There is a key bearish trend line forming with resistance near $8,380 on the 4-hours chart of the BTC/USD pair (data feed from Coinbase).
  • The pair could correct higher, but sellers are likely to remain active near $8,310 and $8,380.

Bitcoin price is trading in a significant downtrend below $8,500 against the US Dollar. BTC may perhaps continue to move down below $8,000 and $7,600 in the near term.

Bitcoin Price Analysis

In the past few days, there were steady downsides in bitcoin price from well above $9,000 against the US Dollar. BTC traded below many key supports near the $8,500 and $8,400 levels to move further into a bearish zone.

Moreover, there was a break below the $8,380 support and the 55 simple moving average (4-hours). The recent decline was such that the price even tested the $8,000 support area and formed a new monthly low at $7,982.

At the outset, the price is correcting higher above $8,100. It is trading near the 23.6% Fib retracement level of the recent decline from the $8,641 high to $7,982 low. If there is a break above $8,140 and $8,180, the price could continue to correct higher.

The next key resistance is near the $8,310 level since it coincides with the 50% Fib retracement level of the recent decline from the $8,641 high to $7,982 low. The main downtrend resistance for bitcoin price seems to be near the $8,380 level.

Additionally, there is a key bearish trend line forming with resistance near $8,380 on the 4-hours chart of the BTC/USD pair. Therefore, a successful close above the $8,380 and $8,400 levels is needed for a strong recovery in the near term.

Conversely, the price could struggle to correct above $8,180 and $8,380. If it fails to break the $8,380 resistance area, the bears are likely to take over again. An initial support is near the $8,000 area, below which the price is likely to dive towards $7,750 or $7,600.

Bitcoin Price
Bitcoin Price

Looking at the chart, bitcoin price is somehow holding the $8,000 support, but it remains at a risk of more losses. To move into a positive zone, the price must surpass the $8,380 and $8,400 resistance levels.

Technical indicators

4 hour MACD – The MACD is currently losing momentum in the bearish zone.

4 hour RSI (Relative Strength Index) – The RSI is currently correcting higher and is moving towards the 35 level.

Key Support Levels – $8,000 and $7,700.

Key Resistance Levels – $8,310, $8,380 and $8,400.

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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