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- There were continuous losses in bitcoin price below the $10,500 support against the US Dollar.
- The price even broke the key $10,000 support and traded to a new weekly low.
- There is a major declining channel forming with resistance near $10,270 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair remains at a risk of more losses and it could break the $9,500 support area.
There were additional bearish moves in bitcoin below the $10,500 support against the US Dollar. BTC price is down more than 10% and it could continue lower towards $9,200.
Bitcoin Price Analysis
Yesterday, there was a minor upside correction above the $10,600 level. However, bitcoin price failed to gain momentum above the $11,000 level against the US Dollar. As a result, there was a fresh decline and the BTC/USD pair traded below the $10,800 and $10,500 support levels. More importantly, there was a break below the $10,200 support and the 100 hourly simple moving average.
Finally, there was a break below the $10,000 support and the price traded to a new below $9,800. The recent swing low was formed at $9,792 and the price remains at a risk of more losses. On the upside, an initial resistance is near the $10,100 level or the 23.6% Fib retracement level of the recent decline from the $10,749 high to $9,792 low. However, the main resistances are near the $10,200 and $10,250 levels.
Moreover, there is a major declining channel forming with resistance near $10,270 on the hourly chart of the BTC/USD pair. The 50% Fib retracement level of the recent decline from the $10,749 high to $9,792 low is also near the channel resistance. Therefore, the price must break the channel resistance and settle above $10,400 to start a decent recovery. The next key resistances are near $10,550 and $10,600.
On the downside, an immediate support is near the $9,750 level. If there is a downside break, the price could even break the $9,600 and $9,500 support levels. The next support is near $9,420, below which the bears might aim the $9,200 support area.
Looking at the chart, bitcoin price is clearly under a lot of pressure below $10,200. There are chances of more downsides below $9,700 and $9,500. Only a close above the $10,250 level and a follow through above $10,400 might decrease the possibility of more downsides towards the $9,200 level.
Technical indicators:
Hourly MACD – The MACD is gaining pace in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now well below the 40 level, with a bearish angle.
Major Support Levels – $9,700 followed by $9,420.
Major Resistance Levels – $10,200, $10,250 and $10,400.
