- Bitcoin price failed on two occasions near $8,950 and recently declined against the US Dollar.
- The price declined below the $8,500 and $8,200 support levels to move into a bearish zone.
- There was a break below a major bullish trend line with support at $8,400 on the 4-hours chart of the BTC/USD pair (data feed from Coinbase).
- The pair is currently recovering, but it is likely to face a strong selling interest near $8,140 or $8,300.
Bitcoin price broke many important supports near $8,150 and $8,000 against the US Dollar. BTC is currently holding the $7,450 support area and it could correct higher in the short term.
Bitcoin Price Analysis
Recently, bitcoin price failed near the $8,950 and $9,000 resistance levels against the US Dollar. The BTC/USD pair failed to remain in a positive zone above $8,800. As a result, there was a downside break below the $8,500 and $8,400 support levels. The pair even settled below $8,350 and the 55 simple moving average (4-hours). It opened the doors for more losses and the price broke the $8,000 pivot level.
Moreover, there was a break below a major bullish trend line with support at $8,400 on the 4-hours chart of the BTC/USD pair. It even traded below $7,800 and a new swing low was formed at $7,427. It seems like the price is currently holding the $7,450 support level and is correcting higher. An initial resistance is $7,800 or the 23.6% Fib retracement level of the recent decline from the $8,851 swing high to $7,427 low. On the upside, there are many hurdles near the $8,000 and $8,150 resistance levels.
The 50% Fib retracement level of the recent decline from the $8,851 swing high to $7,427 low is also near the $8,140 level. If there is an upside break above the $8,150 level, there are chances of more gains. The next key resistance is near the $8,300 level, above which the price could move higher towards $8,500. On the downside, the main support is near the $7,450 level. If there are more losses, the price could continue lower towards the $7,000 support area.
Looking at the chart, bitcoin price is currently correcting higher above $7,700, but it could face many hurdles near $7,920, $7,950 and $8,000. However, a successful push above the $8,150 pivot level is needed for the bulls to gain momentum. The main supports are $7,450 and $7,000.
Technical indicators
4 hour MACD – The MACD is losing momentum in the bearish zone.
4 hour RSI (Relative Strength Index) – The RSI is currently moving higher towards the 45 level, with a positive angle.
Key Support Levels – $7,450 and $7,000.
Key Resistance Levels – $8,000, $8,150 and $8,300.
