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- Bitcoin price is trading with a bearish angle below the $8,880 resistance against the US Dollar.
- The price is likely to continue lower below the $8,640 and $8,600 support levels.
- There is a short term breakout pattern forming with resistance near $8,740 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The bears remain in control unless the price climbs above $8,880 and $9,000.
Bitcoin price is under a lot of pressure below $8,880 against the US Dollar. BTC could decline significantly if it breaks the $8,640 and $8,600 support levels.
Bitcoin Price Analysis
Yesterday, we saw a couple of bearish patterns for bitcoin below the $8,880 resistance against the US Dollar. BTC remained in a bearish zone below the $8,800 level and the 100 hourly simple moving average.
The last rejection was near the $8,780 level and the 100 hourly SMA. A high was formed near $8,784 before the price declined below $8,700. Moreover, the price traded below $8,680 and it is currently testing the $8,640 support area.
If there is an upside correction, the $8,710 level is an immediate resistance. Besides, the 50% Fib retracement level of the recent decline from the $8,784 high to $8,636 low is also near the $8,710 level.
The main resistances on the upside are near the $8,740 and $8,750 levels. More importantly, there is a short term breakout pattern forming with resistance near $8,740 on the hourly chart of the BTC/USD pair.
An intermediate resistance is near the $8,730 level. It represents the 61.8% Fib retracement level of the recent decline from the $8,784 high to $8,636 low. Therefore, bitcoin price might struggle to break the $8,730-$8,750 resistance area.
Furthermore, BTC needs to climb above the key $8,800 and $8,880 resistance levels to move into a positive zone and start a decent recovery. The next resistance is near $9,000, followed by $9,250.
Conversely, the price might continue to move down if it fails to climb above $8,780, $8,800 and $8,880. An initial support is near the $8,640 level. The next key support is near the $8,600 level, below which the price is likely to accelerate lower towards the $8,500 and $8,300 support area.
Looking at the chart, bitcoin is facing a lot of resistances on the upside, starting with $8,780 and up to $9,000. A successful daily close above $9,000 is needed for a fresh increase in the coming days.
Technical indicators:
Hourly MACD – The MACD is currently gaining momentum in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is declining and it is now well below the 50 level.
Major Support Levels – $8,640 followed by $8,600.
Major Resistance Levels – $8,780, $8,800 and $8,880.
