Bitcoin Price Won’t Go Down Quietly: Risk of Bounce Grows

Aayush Jindal

Last Updated: June 11, 2024 1:40 pm

2 mins read

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Bitcoin is currently consolidating above the key $8,500 support area against the US Dollar. BTC price could start a fresh rally if it clears the $8,800 resistance area.

Bitcoin price is confined in a range above the main $8,500 support against the US Dollar.
The bulls are facing hurdles near the $8,760 and $8,800 resistance levels.
There is a key contracting triangle forming with resistance near $8,720 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair could either rally above $8,800 or start a downside extension below $8,470.

Bitcoin Sighting Upside Break

Yesterday, we discussed a downside correction in bitcoin from well above the $9,000 level against the US Dollar. BTC price followed a short term bearish path and broke the $8,800 support area.

Moreover, there was a close below the $8,800 level and the 100 hourly simple moving average. Finally, bitcoin tested the key $8,500 support area and recently started a tiny recovery.

The price tested the $8,500 support area on multiple occasions, but the bears failed to gain traction. As a result, the price recovered above the $8,650 level, plus the 23.6% Fib retracement level of the downward move from the $9,186 high to $8,470 swing low.

On the upside, there are a few key hurdles forming near the $8,760 and $8,800 levels for bitcoin. Besides, there is a key contracting triangle forming with resistance near $8,720 on the hourly chart of the BTC/USD pair.

More importantly, the 100 hourly SMA is near the $8,800 level and the 50% Fib retracement level of the downward move from the $9,186 high to $8,470 swing low.

Therefore, a successful break above the $8,800 resistance could start a fresh rally. In the mentioned case, bitcoin price is likely to climb above the $9,000 and $9,100 levels in the near term. Any further gains could lead the price towards $9,300.

Importance of $8,500 for BTC

As mentioned, the $8,500 support area holds a lot of importance for BTC bulls. If the price fails to stay above the $8,500 and $8,470 support levels, there could be another slide.

Below $8,470, bitcoin is likely to extend its losses towards $8,200 or $8,000. The main support is near $8,000, where the bulls are likely to take a stand.

Technical indicators:

Hourly MACD – The MACD is slowly gaining momentum in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is moving higher and it is just above the 50 level.

Major Support Levels – $8,560 followed by $8,500.

Major Resistance Levels – $8,760, $8,800 and $8,830.

Aayush Jindal

Aayush Jindal, a luminary in the world of financial markets, whose expertise spans over 15 illustrious years in the realms of Forex and cryptocurrency trading. Renowned for his unparalleled proficiency in providing technical analysis, Aayush is a trusted advisor and senior market expert to investors worldwide, guiding them through the intricate landscapes of modern finance with his keen insights and astute chart analysis.

From a young age, Aayush exhibited a natural aptitude for deciphering complex systems and unraveling patterns. Fueled by an insatiable curiosity for understanding market dynamics, he embarked on a journey that would lead him to become one of the foremost authorities in the fields of Forex and crypto trading. With a meticulous eye for detail and an unwavering commitment to excellence, Aayush honed his craft over the years, mastering the art of technical analysis and chart interpretation.
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In a world where uncertainty reigns supreme, Aayush Jindal stands as a guiding light, illuminating the path to financial success with his unparalleled expertise, unwavering integrity, and boundless enthusiasm for the markets.