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- Bitcoin price is consolidating yesterday’s losses above the $8,200 support against the US Dollar.
- The price is clearly trading with a bearish bias and remains at a risk of more losses below $8,000.
- There is a key breakout pattern forming with resistance near $8,600 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The price could soon resume its decline below $8,200 unless the bulls push the price above $8,800.
Bitcoin price is forming the next breakout pattern against the US Dollar. BTC could either resume its decline below $8,000 or it might recover towards $9,000.
Bitcoin Price Analysis
Yesterday, there was a nasty drop in bitcoin below the $9,000 support area against the US Dollar. The price declined close to 15% and even traded below the $8,500 level. Finally, the price settled well below the 100 hourly simple moving average and traded to a new monthly low at $8,055. Later, there was an upside correction above the $8,200 and $8,400 levels.
Moreover, the price recovered above the $8,500 level, plus the 23.6% Fib retracement level of the last major decline from the $10,087 high to $8,055 low. However, the upward move was capped by the $8,750 and $8,800 resistance levels. The bulls made a few attempts to push the price above $8,800, but they failed. As a result, the price started trading in a range below $8,800. At the outset, there is a key breakout pattern forming with resistance near $8,600 on the hourly chart of the BTC/USD pair.
To start a strong recovery, bitcoin price must surpass the $8,600 and $8,800 resistance levels. The next key resistance is near the $9,000 and $9,080 levels. Moreover, the 50% Fib retracement level of the last major decline from the $10,087 high to $8,055 low is also near the $9,070 level. Finally, there is a connecting bearish trend line forming on the same chart with resistance near $9,350 and the 100 hourly SMA.
Conversely, if the price breaks the triangle support at $8,320, there could be a fresh decline. An immediate support is near the $8,200 level, below which the price is likely to revisit the $8,000 support area. Any further losses is likely to open the doors for a drop to $7,500.
Looking at the chart, bitcoin seems to be preparing for the next break either above $8,600 or towards $8,000. The chances of a downside break are high considering the technical structure below $8,000 and the current price action.
Technical indicators:
Hourly MACD – The MACD is likely to move back into the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently struggling to climb towards 50.
Major Support Levels – $8,200 followed by $8,000.
Major Resistance Levels – $8,600, $8,750 and $8,800.
