Bitcoin Dives Below Key Uptrend Support: Here’s Why Bears Are Comfortable

Aayush Jindal

1 year ago

2 mins read

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Bitcoin started a major decline after it broke the $9,500 support against the US Dollar. BTC is now trading below $9,000 and it remains at a risk of more losses below $8,800.

Bitcoin is gaining bearish momentum below the $9,500 and $9,200 support levels.
The price traded as low as $8,813 and it is currently correcting higher.
There is a crucial bearish trend line forming with resistance near $9,100 on the 4-hours chart of the BTC/USD pair (data feed from Kraken).
The pair could correct higher, but it is likely to struggle near $9,100 and $9,300.

Bitcoin Turns Bearish

This past week, bitcoin started a major decline after it broke the $9,500 support against the US Dollar. BTC gained bearish momentum below the $9,300 support level and the 100 simple moving average (4-hours).

It opened the doors for more losses and the price even broke the $9,000 support. A new monthly low is formed near $8,813 and the price is currently correcting higher. An initial resistance is near the $9,000 and $9,040 levels.

The 23.6% Fib retracement level of the downward move from the $9,778 high to $8,813 low is also near the $9,040 level. More importantly, there is a crucial bearish trend line forming with resistance near $9,100 on the 4-hours chart of the BTC/USD pair.

Bitcoin price dives below $9,000: Source: TradingView.com

If bitcoin price breaks the trend line resistance, it could continue to recover towards the main $9,300 resistance. The 100 simple moving average (4-hours) is also waiting near the $9,300 resistance area.

Therefore, the bulls are likely to face a lot of hurdles near the $9,100 and $9,300 levels. To move into a positive zone, the price must settle above $9,300 and the 100 SMA.

More Losses in BTC?

If bitcoin struggles to clear the $9,100 and $9,300 resistance levels, there is a risk of more losses. An initial support is near the $8,813 low and $8,800.

A successful bearish break below the $8,800 support zone could open the doors for a larger decline. In the mentioned case, the bears are likely to aim a test of the $8,500 support level in the near term.

Technical indicators

4 hours MACD – The MACD for BTC/USD is gaining pace in the bearish zone.

4 hours RSI (Relative Strength Index) – The RSI for BTC/USD is currently well below the 40 level.

Major Support Level – $8,800

Major Resistance Level – $9,300

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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.
As a software engineer, Aayush harnesses the power of technology to optimize trading strategies and develop innovative solutions for navigating the volatile waters of financial markets. His background in software engineering has equipped him with a unique skill set, enabling him to leverage cutting-edge tools and algorithms to gain a competitive edge in an ever-evolving landscape.

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Aayush's journey to success is marked by a relentless pursuit of excellence and a steadfast commitment to continuous learning and growth. His academic achievements are a testament to his dedication and passion for excellence, having completed his software engineering with honors and excelling in every department.

At his core, Aayush is driven by a profound passion for analyzing markets and uncovering profitable opportunities amidst volatility. Whether he's poring over price charts, identifying key support and resistance levels, or providing insightful analysis to his clients and followers, Aayush's unwavering dedication to his craft sets him apart as a true industry leader and a beacon of inspiration to aspiring traders around the globe.

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.

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