- Bitcoin price failed to hold the $8,240 support and declined sharply against the US Dollar.
- There is a major bearish trend line formed with resistance at $8,100 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair may well correct higher in the short term towards the $8,100 and $8,160 resistance levels.
Bitcoin price broke key supports near $8,200 against the US Dollar. BTC/USD may continue to face selling interest near $8,100 and $8,200.
Bitcoin Price Analysis
Yesterday, we discussed about a major support near $8,240 in bitcoin price against the US Dollar. The BTC/USD pair failed to hold the stated $8,240 support and even broke the 100 hourly simple moving average. It opened the doors for more losses and the price broke the $8,160 support level. Sellers took control and pushed the price below the $8,000 handle. A low was formed below $7,900 at $7,860 where buyers defended further losses.
At the moment, the price is consolidating above $7,850. An initial resistance is near the 38.2% Fib retracement level of the last drop from the $8,253 high to $7,860 low. Above this, there is a major bearish trend line formed with resistance at $8,100 on the hourly chart of the BTC/USD pair. More importantly, the 50% Fib retracement level of the last drop from the $8,253 high to $7,860 low is at $8,057. Therefore, if the price moves above $8,000, there are many hurdles near $8,100, waiting to cap upsides.
Looking at the chart, the price clearly broke a key support at $8,160, signaling a short-term downtrend. There could be recoveries towards $8,100 and $8,200. However, as long as the price is below $8,200, it is likely to remain under selling pressure.
Looking at the technical indicators:
Hourly MACD – The MACD for BTC/USD is mostly placed in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI is moving higher from the oversold levels.
Major Support Level – $7,850
Major Resistance Level – $8,100