Bitcoin Could Narrowly Avoid a Downside Thrust if it Closes Above 100 SMA

Aayush Jindal

1 year ago

2 mins read

Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Created by industry experts and meticulously reviewed

The highest standards in reporting and publishing

How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

Bitcoin is declining steadily and trading below $9,400 against the US Dollar. BTC could decline sharply below $9,250 if it fails to reclaim the 100 hourly simple moving average.

Bitcoin is slowly moving lower and now trading well below the $9,500 pivot level.
The price is showing a few bearish signs below $9,400 and the 100 hourly simple moving average.
There is a crucial declining channel or a bullish flag pattern forming with resistance near $9,400 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair could decline sharply below $9,250 if there is no close above the channel resistance.

Bitcoin Price Sliding Towards $9,250

After forming a short-term top near the $9,500 level, bitcoin price started a fresh decline against the US Dollar. BTC broke the key $9,500 support and pivot zone to start a downside correction.

It broke the 23.6% Fib retracement level of the upward move from the $8,907 low to $9,600 swing high. The bears were able to push the price below the $9,400 level and the 100 hourly simple moving average.

It seems like there is a crucial declining channel or a bullish flag pattern forming with resistance near $9,400 on the hourly chart of the BTC/USD pair. On the downside, the first key support is seen near the $9,250 level. It is close to the 50% Fib retracement level of the upward move from the $8,907 low to $9,600 swing high.

Bitcoin price chart: Source: TradingView.com

Bitcoin is clearly struggling to clear the channel resistance and the 100 hourly SMA to resume its upside above $9,500. Therefore, there is a risk of more losses below the $9,250 support level.

The next major support is near the $9,140 level, below which the price will most likely continue lower towards the $9,000 support level in the near term.

Upside Break in BTC?

If bitcoin manages to clear the channel resistance at $9,400 and the 100 hourly SMA, the bulls are likely to gain strength. The first key resistance is near the $9,500 level, above which the price could revisit the $9,600 swing high.

Any further gains could open the doors for a larger upward move towards the main $10,000 resistance (as discussed using the daily chart).

Technical indicators:

Hourly MACD – The MACD is slowly gaining pace in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now well below the 50 level, with a bearish angle.

Major Support Levels – $9,250 followed by $9,080.

Major Resistance Levels – $9,400, $9,500 and $9,800.

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.

In addition to his roles in finance and technology, Aayush serves as the director of a prestigious IT company, where he spearheads initiatives aimed at driving digital innovation and transformation. Under his visionary leadership, the company has flourished, cementing its position as a leader in the tech industry and paving the way for groundbreaking advancements in software development and IT solutions.

Despite his demanding professional commitments, Aayush is a firm believer in the importance of work-life balance. An avid traveler and adventurer, he finds solace in exploring new destinations, immersing himself in different cultures, and forging lasting memories along the way. Whether he's trekking through the Himalayas, diving in the azure waters of the Maldives, or experiencing the vibrant energy of bustling metropolises, Aayush embraces every opportunity to broaden his horizons and create unforgettable experiences.

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.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.