Bitcoin Price (BTC) Recovery Is Facing Strong Resistance, Bears In Check
Bitcoin price declined recently and traded below the $8,575 support area. BTC to USD is currently recovering from $8,217, but there are many hurdles on the upside.
Key Takeaways: BTC/USD
- Bitcoin price is currently correcting losses after a sharp decline towards $8,200 against the US Dollar.
- BTC/USD is facing a strong resistance near $8,475 and a bearish trend line on the 2-hours chart (data feed from Bitstamp).
- Ethereum is also correcting higher, but it is likely to struggle near $162.50 and $164.00.
Bitcoin Price Analysis
In the past few days, bitcoin price followed a bearish path and broke the $8,850 and $8,640 support levels. More importantly, BTC to USD broke the key $8,575 support level to enter a bearish zone.
Looking at the 2-hours chart, bitcoin even settled below the $8,500 level and the 50 simple moving average (2-hours, purple). Finally, there was a drop below the $8,400 level and the price traded towards the $8,200 support.
A low is formed near $8,217 and the price is currently correcting higher. It broke the 23.6% Fib retracement level of the recent slide from $8,788 to $8,217. However, there are many hurdles for the bulls near the $8,500 area.
Besides, bitcoin price is facing a strong resistance near $8,475 and a bearish trend line on the 2-hours chart. The 50% Fib retracement level of the recent slide from $8,788 to $8,217 is also near the $8,503 level.
Finally, the 50 simple moving average (2-hours, purple) is close to the $8,575 resistance area. Therefore, the bulls need to push the price above the $8,500 and $8,575 resistance levels to start a decent upward move in the near term.
A successful close above the $8,575 resistance level could start a fresh increase in the near term. The next major hurdle for the bulls might be $8,650 and $8,740.
Conversely, bitcoin price might fail to continue above the $8,500 and $8,575 resistance levels. In the mentioned bearish case, the price is likely to gain momentum below the $8,200 support level in the coming sessions.