Key Points
- Bitcoin price failed to break a major resistance area near $9,400 and declined sharply against the US Dollar.
- There is a major bearish trend line forming with resistance at $9,380 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair is now trading well below the $9,050 support, which is a bearish sign in the short term.
Bitcoin price turned bearish below $9,050 against the US Dollar. BTC/USD may continue to move down as long as it is below $9,000-9,050.
Bitcoin Price Analysis
Yesterday, we discussed a major resistance area near $9,450 in bitcoin price against the US Dollar. The price was trading with a positive bias, but buyers failed to push the price above $9,400 and $9,450, which resulted in a downside move. There was a sharp bearish reaction and the price tumbled below the $9,050 and $9,000 support levels. The recent downside break looks real as the price settled below the $9,000 handle and the 100 hourly simple moving average.
It traded as low as $8,696 and is currently consolidating losses. An initial resistance is near the 23.6% Fib retracement level of the last decline from the $9,465 high to $8,696 low. However, the most important resistance is close to $9,050, which was a support earlier. Moreover, the 50% Fib retracement level of the last decline from the $9,465 high to $8,696 low is at $9,050 to prevent gains. A push above $9,050 could decrease the current bearish pressure in the short term.
Looking at the hourly chart, is a major bearish trend line forming with resistance at $9,380. On the downside, a break and close below $8,600 may perhaps open the doors for more losses towards the $8,200 level in the near term.
Looking at the technical indicators:
Hourly MACD – The MACD for BTC/USD is gaining momentum in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI is currently near the extreme oversold levels.
Major Support Level – $8,600
Major Resistance Level – $9,050