Bitcoin (BTC) Price Target Additional Weakness, Upsides Remain Capped

Aayush Jindal

1 year ago

2 mins read

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Bitcoin price declined heavily in the past few sessions below $10,000 against the US Dollar.
The price is currently correcting higher after it tested the $9,750 support area.
There is a declining channel forming with resistance near $10,100 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The price could correct higher in the short term, but upsides are likely to remain capped near $10,100.

Bitcoin price is back in a bearish zone below $10,250 against the US Dollar. BTC is likely to extend its decline if it fails to recover above $10,250 and $10,400.

Bitcoin Price Analysis

Yesterday, we saw a fresh decrease in BTC below the $10,250 support against the US Dollar. It opened the doors for more losses and the price declined below the $10,100 and $10,000 support levels. Moreover, there was a close below the $10,000 support and the 100 hourly simple moving average. The decline was such that the price broke the $9,800 support and tested the $9,750 level.

A swing low was formed near $9,757 and the price is currently correcting higher. It is testing the $10,000 resistance plus the 23.6% Fib retracement level of the recent decline from the $10,836 high to $9,757 low. However, there are many resistances on the upside near $10,100 and $10,200 levels. Additionally, there is a declining channel forming with resistance near $10,100 on the hourly chart of the BTC/USD pair.

If there is an upside break above the channel resistance, the price could correct higher towards the $10,250 and $10,300 resistance levels. The 50% Fib retracement level of the recent decline from the $10,836 high to $9,757 low is also near the $10,296 level to act as a strong resistance. Therefore, an upside correction towards $10,100 or $10,250 is likely to face a strong resistance.

If the price fails to correct above the $10,100 resistance or the $10,250 barrier, it could resume its decline. An immediate support is near the $9,750 level, below which the bears are likely to target the $9,500 support area. Moreover, an intermediate support is near the $9,620 level.

Looking at the chart, bitcoin price is clearly back in a bearish zone, with a close below $10,250 and the 100 hourly SMA. Therefore, to start a fresh increase, the bulls need to gain strength above $10,250 and $10,300. The next major resistance is near the $10,500 level and a connecting bearish trend line on the same chart.

Technical indicators:

Hourly MACD – The MACD is about to move back into the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently recovering, but it is still well below 50.

Major Support Levels – $9,750 followed by $9,500.

Major Resistance Levels – $10,100, $10,250 and $10,300.

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.

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