Bitcoin Price (BTC) Downside Thrust Underway Towards $8K
Bitcoin price is under a lot of pressure and is trading below the $8,630 resistance area. BTC to USD is likely to extend its decline towards $8,225 or $8,050 before a nice recovery.
Key Takeaways: BTC/USD
- Bitcoin price is showing a lot of bearish signs below the $8,630 resistance area against the US Dollar.
- BTC/USD is facing a strong resistance near $8,550 and a declining channel on the 2-hours chart (data feed from Bitstamp).
- Ethereum is consolidating, while ripple and bitcoin cash are trading in a downtrend.
Bitcoin Price Analysis
In the past 7-8 days, bitcoin price followed a downward angle from well above the $8,800 support. BTC to USD broke a lot of support levels near the $8,630 and $8,550 levels to move further into a bearish zone.
Looking at the 2-hours chart, bitcoin even settled below the $8,550 support area and the 50 simple moving average (2-hours, purple). The last rejection level was near the $8,630 before the price declined below the $8,400 level.
Finally, there was a break below the $8,383 low. Moreover, the bears pushed the price towards $8,325 and the 1.236 Fib extension level of the upward move from $8,383 to $8,637. However, the $8,350 zone seems to be action as a support.
On the upside, bitcoin is facing a strong resistance near $8,550 and a declining channel on the same chart. Besides, the 50 simple moving average (2-hours, purple) is also positioned near the $8,510 level to act as a resistance.
Therefore, the price must climb above the $8,550 resistance area to start a decent recovery. The next key resistance is $8,630, above which the price is likely to test the $8,800 resistance area.
On the downside, a break below the $8,325 support might push the price towards the $8,225 zone. It coincides with the 1.618 Fib extension level of the upward move from $8,383 to $8,637.
To sum up, bitcoin is facing a lot of resistance near $8,550, putting at a risk of more losses below $8,325. This could be the final thrust towards the $8,225 and $8,050 levels before the price starts a recovery.