Bitcoin price declined more than 10% and traded near the USD 10,000 support against the US dollar. BTC may correct higher, but benefits are likely limited to around $ 10,800.
- Bitcoin started a steep decline, weakening more than $ 1,000 in the past three sessions.
- The price is down more than 10% and it broke the USD 10,500 support and the 100 easy hourly moving average.
- A major bearish trendline is forming with resistance near USD 10,750 on the hourly chart of the BTC / USD pair (Kraken data feed).
- The pair is currently consolidating losses near USD 10,250 and it could correct higher in the near term.
Bitcoin price drops $ 1,000
Yesterday we saw a sharp bearish wave in bitcoin price below the USD 11,500 support against the US dollar. BTC remained in a bearish zone and broke many supports such as USD 11,000 and USD 10,800.
The price is down more than 10% and it broke the USD 10,500 support and the 100 easy hourly moving average. A low is forming near USD 10,039 and the price is currently consolidating losses. An initial resistance on the upside is near the USD 10,400 level.
The 23.6% Fib retracement level of the recent decline from the high of $ 11,484 to the low of $ 10,039 is near the $ 10,380 level to act as resistance. The next key resistance is near the USD 10,500 level (a multi-touch zone).
Bitcoin price trades below $10,500. Source: TradingView.com
The main resistance is now forming around the USD 10,800 level. A major bearish trendline is also forming with resistance near USD 10,750 on the hourly chart of the BTC / USD pair. The trend line is close to the 50% Fib retracement level of the recent decline from the high of $ 11,484 to the low of $ 10,039.
A successful break above the USD 10,500 level and then a follow-up move above the USD 10,800 level is needed to return to a positive zone in the near term.
More losses in BTC
If bitcoin price struggles to clear away the USD 10,500 resistance, it could continue to decline. The first major support for the bulls is near the USD 10,050 level.
The main support is near the USD 10,000 area, below which is open space and the price could drop another 5% -10%.
Hourly MACD – The MACD is slowly losing momentum in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC / USD is now well below the 40 level.
Key Support Levels – USD 10,050, followed by USD 10,000.
Key Resistance Levels – USD 10,400, USD 10,500 and USD 10,800.