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- Bitcoin price is declining and it is now trading below the $8,800 level against the US Dollar.
- The price is trading with a bearish angle and it is likely to tumble below $8,600 and $8,500.
- Today’s key bearish trend line is active with resistance near $8,960 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- A clear break below $8,600 is likely to push the price below $8,500 and $8,450.
Bitcoin price is setting up for another dive below $8,600 against the US Dollar. BTC could even struggle to hold $8,500, considering the current bearish formation.
Bitcoin Price Analysis
In morning, we discussed the chances of more losses and sell opportunities for bitcoin below $9,000 against the US Dollar. BTC remained in a bearish zone and it failed to break the $8,850 resistance area.
Additionally, the price is now trading well below the $8,800 and the 100 hourly simple moving average. It seems like the price failed to capitalize above the 23.6% Fib retracement level of the last drop from the $9,150 high to $8,610 low.
More importantly, the price was rejected near the 50% Fib retracement level of the last drop from the $9,150 high to $8,610 low. Bitcoin is now trading below the $8,750 level and is following a bearish path.
Recently, there was a break below a contracting triangle with support near $8,730 on the hourly chart of the BTC/USD pair. Therefore, there is a risk of more downsides below the $8,650 and $8,600 levels.
In the mentioned bearish case, there is a risk of a sharp breakdown even below the $8,500 support. On the upside, an initial resistance for the bulls is near the $8,820 level and the 100 hourly SMA.
However, the main resistance is near the $8,850 and $8,950 levels. Besides, today’s key bearish trend line is active with resistance near $8,960 on the hourly chart of the BTC/USD pair.
If there is a nice upward move above the $8,850 and $8,950 resistance levels, the price may perhaps start a fresh increase towards $9,200 and $9,500 in the coming days.
Looking at the chart, bitcoin is clearly sliding and is trading well below the $8,850 resistance area. Thus, the bears remain in control and any recovery is likely to face resistance near $8,820, $8,850 and $8,950. On the downside, the bulls might be keeping a close eye on the $8,500 zone.
Technical indicators:
Hourly MACD – The MACD is currently gaining pace in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently declining and is trading below the 40 level.
Major Support Levels – $8,600 followed by $8,500.
Major Resistance Levels – $8,820, $8,850 and $8,950.
