Bitcoin started a strong downward correction from the high of $ 9,945 against the US dollar. BTC tested the USD 8,800 support area and is currently correcting higher.
- Bitcoin is trading above the key USD 8,800 and USD 9,000 support levels.
- The price faces a number of significant hurdles near the USD 9,400 and USD 9,500 levels.
- There is strong declining channel formation with a resistance of nearly $ 9,560 on the 4-hour chart of the BTC / USD pair (Kraken’s data feed).
- The pair needs to rise above USD 9,500 and USD 9,560 to avoid more losses in the short term.
Bitcoin Trading above key supports
Last week, bitcoin reached a significant short-term high just below the USD 10,000 level against the US dollar. BTC price traded to $ 9,945 before it started a big drop.
There was a sharp drop below the USD 9,500 and USD 9,250 support levels. The price even broke the USD 9,000 support and fell below the 100 simple moving average (4 hours). It tested the USD 8,800 support level and hit an USD 8,806 low.
Bitcoin price is currently correcting higher and trading above $ 9,000. It surpassed the 23.6% Fib retracement level from the recent drop from the $ 9,945 to $ 8,806 level.
On the upside, there is a major hurdle near the USD 9,400 level and the 100 Simple Moving Average (4 hours). The 50% Fib retracement level from the recent drop from its all-time high of $ 9,945 to its low of $ 8,806 is also near $ 9,375 to halt the current move.
More importantly, there is a large declining channel formation with a resistance of almost $ 9,560 in the 4 hours chart of the BTC / USD pair. If the pair moves above the USD 9,400 resistance, it could face strong resistance near the USD 9,500 and USD 9,560 levels.
To go back to a positive zone, the price must exceed $ 9,400 and then gain pace above the channel resistance zone. The next key resistance is near the USD 9,800 and USD 10,000 levels.
If bitcoin fails to hold the USD 9,400 resistance, the 100 simple moving average (4 hours) and $ 9,500, there is a risk of more losses in the short term.
In the said case, the price is likely to drop below $ 9,000 in support. Key support is near the USD 8,800 level, below which the bears are likely to target a USD 8,400 level test.
4 hours MACD – The MACD for BTC / USD is losing its pace in the bullish zone.
4 hours RSI (Relative Strength Index) – The RSI for BTC / USD is currently near the 45 level.
Great support level – $ 9,000
Major resistance level – $ 9,500
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