Bitcoin Price (BTC) Downside Thrust Underway Before Fresh Rise

Aayush Jindal

1 year ago

2 mins read

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Bitcoin price is currently declining after it failed to surpass the $8,400 resistance against the US Dollar.
The price is trading near the $8,000 support level, with a minor bearish angle.
There is a key declining channel forming with resistance near the $8,260 level on the hourly chart of the BTC/USD pair (data feed from Kraken).
The price is at a risk of a downside break below the $8,000 support in the near term.

Bitcoin price is struggling to hold the key $8,000 support against the US Dollar. BTC might dip towards the $7,800 support area before it could start a decent recovery.

Bitcoin Price Analysis

In the past two sessions, there were bearish moves in bitcoin below $8,300 against the US Dollar. The BTC/USD pair followed a bearish path and broke the $8,200 support area. Moreover, there was a close below the $8,200 level and the 100 hourly simple moving average. The last swing high was formed near $8,300 before the price broke $8,200 support.

Additionally, there was a break below the 50% Fib retracement level of the upward move from the $7,659 low to $8,539 high. The recent decline was such that the price tested the $8,000 support area. More importantly, the price tested the 61.8% Fib retracement level of the upward move from the $7,659 low to $8,539 high. At the moment, the price is struggling to hold the $8,000 support area.

It seems like there is a key declining channel forming with resistance near the $8,260 level on the hourly chart of the BTC/USD pair. Thus, if there is a downside break below the $8,000 support, the price could accelerate its decline towards the $7,800 support area. Besides, an intermediate support is near $7,850 or the 76.4% Fib retracement level of the upward move from the $7,659 low to $8,539 high.

On the upside, there is a solid resistance forming near the $8,250 level and the 100 hourly SMA. Therefore, if there is an upside break above $8,250 and $8,300, the price could trade towards the main $8,500 resistance level in the near term.

Looking at the chart, bitcoin is clearly struggling to climb above the $8,300 level. Therefore, there is a risk of a downside break below the $8,000 support. In the mentioned case, the price could test the $7,800 support or trade to a new monthly low before it starts a decent recovery towards $9,000.

Technical indicators:

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

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently well below the 50 level.

Major Support Levels – $8,000 followed by $7,800.

Major Resistance Levels – $8,250, $8,300 and $8,500.

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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