Analysis Technical

Bitcoin Price Watch: Can BTC/USD Hold This Support?

Aayush Jindal | May 9, 2018 | 9:00 am
bitcoin technical analysis
Analysis

Bitcoin Price Watch: Can BTC/USD Hold This Support?

Aayush Jindal | May 9, 2018 | 9:00 am

Key Points

  • Bitcoin price declined recently and broke the $9,300 support against the US Dollar.
  • There is a crucial bearish trend line in place with resistance at $9,150 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair must stay above the $8,990 and $8,870 support levels to avoid further losses.

Bitcoin price is struggling to gain upside momentum above $9,200 against the US Dollar. However, BTC/USD is holding a major support near $9,000, which is a positive sign.

Bitcoin Price Supports

There was a start of a fresh downside wave in bitcoin price from the $9,900 resistance zone against the US Dollar. The price declined and broke many supports such as $9,500 and $9,300. The decline was such that the price settled below the $9,500 support and the 100 hourly simple moving average. It even spiked below the $9,000 support, but losses were limited.

At the moment, the price is holding the $8,990 and $8,870 support levels very well. Both the stated supports hold a lot of importance if BTC has to bounce back above $9,500. On the upside, an initial resistance is close to the 23.6% Fib retracement level of the last decline from the $9,465 high to $8,969 low. There is also a crucial bearish trend line in place with resistance at $9,150 on the hourly chart of the BTC/USD pair. Above the trend line, the next hurdle is near the 50% Fib retracement level of the last decline from the $9,465 high to $8,969 low at $9,217.

Bitcoin Price Tech Analysis BTC USD

Looking at the chart, it seems like a proper break above the trend line and $9,220 is required for buyers to gain control. On the flip side, a downside break and close below $8,870 could open the doors for more losses towards $8,500.

Looking at the technical indicators:              

Hourly MACD – The MACD for BTC/USD is mostly in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI is moving higher from the 40 level.

Major Support Level – $8,870

Major Resistance Level – $9,220

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