Bitcoin Price Remains At Risk Of Additional Downsides
Recently, bitcoin price started a downside correction after it failed to climb above $9,400. BTC to USD is currently struggling and it seems like it could extend its decline below $9,050.
Key Takeaways: BTC/USD
- Bitcoin price is struggling to climb higher above the $9,240 and $9,330 resistance levels against the US Dollar.
- BTC/USD is facing a strong resistance near $9,240 and a bearish trend line on the 2-hours chart (data feed from Bitstamp).
- Ethereum, ripple, and bitcoin cash are also showing a few bearish signs below key supports.
Bitcoin Price Analysis
After a strong upward move, bitcoin price started a downside correction from the $10,354 swing high. BTC broke a few supports near $10,000 and $9,800 to move into a short term bearish zone.
Looking at the 2-hours chart, bitcoin even broke the $9,400 pivot level and settled below the 50 simple moving average (2-hours, purple). During the decline, there was a break below the 23.6% Fib retracement level of the upward leg from $7,405 to $10,354.
At the moment, bitcoin is trading inside a short term contracting triangle with resistance near $9240. The 50 simple moving average (2-hours, purple) is also near the $9,240 area.
Therefore, the price is clearly facing strong resistance near $9,240 and a bearish trend line on the same chart. If there is a clear break above $9,240, plus a follow through above the $9,330 resistance, there could be a decent upward move in the coming sessions.
The next major resistances are near $9,500 and $9,600, above which the price is likely to revisit the $10,000 mark. Conversely, there could be a downside break below the $9,050 and $9,000 support levels.
An immediate support is near the $8,880 level since it is the 50% Fib retracement level of the upward leg from $7,405 to $10,354. If there are more downsides below $8,880, the price could continue to slide towards the $8,550 and $8,530 support levels.
Overall, bitcoin price is struggling and it must break $9,240 and $9,330 to start a fresh upward move. If not, it is likely to test $8,880 or even $8,530.