Bitcoin (BTC) Price Dives $500 But Holding Key Support

Aayush Jindal

1 year ago

2 mins read

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Bitcoin price climbed to $8,950, but failed to continue higher against the US Dollar.
The price is down around $500, but it is holding the key $8,400 and $8,350 supports.
There is a major bullish trend line forming with support near $8,400 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The price could test the $8,350 support and it is likely to recover in the near term.

Bitcoin price is trading with swing moves below $9,000 against the US Dollar. BTC declined sharply from $8,950, but it is now approaching a couple of important supports.

Bitcoin Price Analysis

Recently, there was a sharp rise in bitcoin above the $8,600 and $8,650 resistance levels against the US Dollar. Moreover, the price spiked above the $8,800 resistance area and remained well above the 100 hourly simple moving average. The price traded close to the $8,950 level and formed a new weekly high at $8,934. However, the price struggled to continue higher and there was a sharp decline below $8,800.

Additionally, the price broke the 61.8% Fib retracement level of the recent rally from the $8,457 low to $8,934 high. There is a large red candle forming on the hourly chart with body below $8,600. The price even traded below the last swing low at $8,457. However, the $8,400 support area is acting as a decent support. More importantly, there is a major bullish trend line forming with support near $8,400 on the hourly chart of the BTC/USD pair.

The next key support is near the $8,350 level (the previous resistance area). It represents the 1.236 Fib extension level of the recent rally from the $8,457 low to $8,934 high. The main support is near the $8,315 level since it coincides with the 100 hourly SMA. Therefore, a close below the $8,000 support might push the price back into a bearish zone.

On the upside, an initial resistance is near the $8,550 level, followed by $8,600. The main resistances are near the $8,660 and $8,800 levels. It seems like the price might trade in a range above the $8,300 support area before it could start a fresh increase.

Looking at the chart, bitcoin is showing a lot of bearish signs from the $8,934 swing high. It seems like it was rejected close to $9,000. It is currently approaching the $8,350 and $8,300 support levels, where the bulls are likely to take a stand.

Technical indicators:

Hourly MACD – The MACD is currently gaining strength in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is down sharply and is below the 50 level.

Major Support Levels – $8,350 followed by $8,300.

Major Resistance Levels – $8,550, $8,660 and $8,800.

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.
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