Bitcoin Price (BTC) Extending Decline, $8,500 Still On The Cards
Bitcoin price is trading in a bearish zone below the $8,960 support area. BTC to USD is likely to decline further and it might continue to decline towards $8,500.
Key Takeaways: BTC/USD
- Bitcoin price is struggling to correct higher and is trading well below $8,960 against the US Dollar.
- BTC/USD is facing a strong resistance near $8,960 and a bearish trend line on the 2-hours chart (data feed from Bitstamp).
- Ethereum, ripple, and bitcoin cash are also under selling pressure below key resistances.
Bitcoin Price Analysis
In the past few days, bitcoin price started a fresh decline below the $9,100 and $8,960 support levels. BTC to USD even broke the $8,820 support area and traded to a new monthly low below the $8,600 level.
Looking at the 2-hours chart, bitcoin even settled below the $8,960 level and the 50 simple moving average (2-hours, purple). The recent low was near $8,596 and the price is currently consolidating losses.
An immediate resistance is near the $8,725 level. It represents the 23.6% Fib retracement level of the recent decline from $9,140 to $8,596. The next key resistance area is near the $8,860 level.
Moreover, the 50% Fib retracement level of the recent decline from $9,140 to $8,596 is near the $8,865 level to act as a resistance. The main resistance is near the $8,960 level (the previous support area). Besides, the 50 simple moving average (2-hours, purple) is also positioned near the $8,930 level.
Overall, bitcoin is facing a strong resistance near $8,960 and a bearish trend line on the same chart. Therefore, a successful break above the 50 SMA and $8,960 is needed for a decent upside recovery in the coming sessions.
On the downside, an initial support is near the $8,600 area. If there is a downside break, the price could decline further towards the next support near the $8,500 level.
To sum up, bitcoin is trading in a bearish zone below the $8,860 and $8,960 resistance levels. Therefore, there is a possibility of more downsides below $8,600 unless the price starts a decent recovery above $8,960.