Bitcoin Price (BTC) Could Dip Again Before Fresh Increase To $9K
Bitcoin price is currently declining and it recently failed to clear the $8,975 resistance area. BTC to USD could test the $8,625 or $8,540 support level before it starts a fresh increase in the near term.
Key Takeaways: BTC/USD
- Bitcoin price is showing a few bearish signs below the $8,800 level against the US Dollar.
- BTC/USD traded below the $8,760 support and a contracting triangle support on the 2-hours chart (data feed from Bitstamp).
- Ethereum is also declining and it recently failed to climb above the $230.00 resistance area.
Bitcoin Price Analysis
After trading as low as $8,408, bitcoin price started a decent upward move above the $8,625 resistance level. BTC to USD even broke the $8,800 resistance area and retested the last swing high at $8,975.
Looking at the 2-hours chart, bitcoin settled above the $8,700 level and the 50 simple moving average (2-hours, purple). However, it struggled to continue above the $8,975 resistance area and recently corrected lower.
There was a break below the 23.6% Fib retracement level of the upward move from $8,408 to $8,974. More importantly, bitcoin price traded below the $8,760 support and a contracting triangle support on the 2-hours chart.
The price is now trading near the $8,700 support level and the 50 simple moving average (2-hours, purple). The 50% Fib retracement level of the upward move from $8,408 to $8,974 is also near the $8,700 area.
If there are more losses, the price could test the $8,625 support level. Any further losses may perhaps lead the price towards the $8,540 support area. On the upside, an initial resistance is near the $8,820 level.
If the bulls are able to gain momentum above $8,820, the next stop could be the main $8,975 resistance area. A successful close above the $8,975 resistance area could set the pace for a larger upward move towards the $9,090 and $9,200 resistance levels.
Overall, bitcoin price might dip a few points towards the $8,625 support level before the bulls aim a fresh increase towards the $8,975 and $9,090 levels in the near term.