Bitcoin Takes a Big Hit: Main Reasons Why Recovery Could Face Sellers

Bitcoin fell by more than 5%, breaking the key USD 9,300 support zone against the US dollar. BTC was trading as low as $ 9,089 and is currently correcting higher towards hurdles.

  • Bitcoin fell sharply after being rejected near the $ 10,000 level one more time.
  • There was a break below many key supports near USD 9,500 and USD 9,300.
  • On the hourly chart of the BTC / USD pair (Kraken’s data feed), there is a short-term contracting triangle with a resistance of nearly $ 9,340.
  • The pair could correct further, but the gains are likely to face sellers near USD 9,400 and USD 9,500.

Bitcoin price turns red

After another crucial rejection near the USD 10,000 level, bitcoin price started a big bearish wave against the US dollar. BTC gained bearish momentum below the USD 9,800 and USD 9,500 support levels.

It weakened more than 5% to settle below the USD 9,500 level and the 100 hourly moving average. The decline was such that the price even broke the USD 9,300 support and traded to a new weekly low of $ 9,089.

Bitcoin is currently correcting higher and trading above the USD 9,250 level. It surpassed the 23.6% Fib retracement level from the recent drop from the $ 9,988 high to $ 9,089 low. It appears that a contracting triangle is forming in the short term with a resistance of almost $ 9,340 per hour chart of the BTC / USD pair.

Bitcoin price

The pair may see further correction above the triangle’s resistance and USD 9,350. However, the pair is likely to face many hurdles near the USD 9,400 and USD 9,500 levels (the previous key supports).

The next major resistance could be near the USD 9,540 level or the 50% Fib retracement level of the recent decline from the USD 9,988 to USD 9,989 level. Any further gains could ease bearish pressure and the price could rebound towards the USD 9,800 resistance.

More losses in BTC?

Once bitcoin price completes the current correction wave near USD 9,400 or USD 9,500, the decline is likely to resume. An initial support at the bottom is near the USD 9,300 level.

The next big support is near the USD 9,100 level, which risks further losses falling below the USD 9,000 handle in the coming sessions. In the case mentioned, the price may revisit $ 8,800.

Technical indicators:

Hourly MACD – The MACD slowly decreases its bearish slope and can move to the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC / USD is currently recovering higher towards 40.

Major support levels – $ 9,300 followed by $ 9,100.

Large resistance levels – $ 9,400, $ 9,500 and $ 9,540.

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