Bitcoin Saw A Key Technical Breakdown: Here’s Why BTC Could Decline Further

Bitcoin started to plummet after it broke its key USD 9,500 support against the US dollar. The BTC price is currently correcting higher from the low of $ 8,794, but the benefits are likely to remain limited.

  • Bitcoin has declined more than 5% and has broken many key supports near USD 9,500 and USD 9,150.
  • The price is now trading well below the USD 9,250 pivot level and the 100-hour moving average.
  • There is a key that forms bearish trendline formation with a near USD 9,220 resistance on the hourly chart of the BTC / USD pair (Kraken’s data feed).
  • The pair is likely to gain strong selling interest near the USD 9,220, USD 9,250 and USD 9,300 levels.

Bitcoin turns red

Bitcoin price started to plummet after not rising above USD 9,800 against the US dollar. The BTC price broke many supports near USD 9,540 and USD 9,500 to enter a bearish zone (as discussed yesterday).

There was a sharp drop below the USD 9,250 and USD 9,150 support levels. It even dipped below $ 9,000 and fell well below the 100-hour moving average. It traded to a new weekly low of $ 8,794 before starting an upward correction.

Bitcoin recovered above the USD 9,000 resistance level. It also managed to recover above the 23.6% Fib retracement level of the recent slide from the $ 9,842 high to $ 8,794 low.

On the upside, many hurdles are near the USD 9,220, USD 9,250 and USD 9,300 levels. There is also a major unifying trend line of bearish trends with a resistance of almost $ 9,220 per hour chart of the BTC / USD pair.

Bitcoin price

The trendline is close to the 50% Fib retracement level of the recent slide from $ 9,842 high to $ 8,794 low. Therefore, the price is likely to have strong selling interest near the USD 9,220, USD 9,250 and USD 9,300 levels.

BTC’s Bearish Extension

If bitcoin doesn’t correct above the USD 9,150 and USD 9,250 resistance levels, it’s likely to stay lower. An initial support at the bottom is close to $ 9,000.

A daily close below the USD 9,000 level could trigger a new bearish wave. The next key support is near the USD 8,800 level, below which the price is likely to plunge into the USD 8,500 support zone. Any further losses may bring the price to $ 8,200.

Technical indicators:

Hourly MACD – The MACD is currently in the bullish zone, but may turn bearish again.

Hourly RSI (Relative Strength Index) – The RSI for BTC / USD is currently recovering to the level of 45.

Major support levels – $ 9,000 followed by $ 8,800.

Large resistance levels – $ 9,130, $ 9,250, and $ 9,300.

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