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Bitcoin bulls are facing an uphill task near $8,700 and $8,800 against the US Dollar. BTC price could either rally above $8,800 or decline heavily below $8,470 in the coming sessions.
- Bitcoin is showing a few bearish signs after it was rejected near $8,800.
- The price is currently sliding and it is approaching the key $8,560 and $8,470 support levels.
- There is a major bearish trend line forming with resistance near $8,640 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could either start a fresh increase above $8,800 or decline heavily below $8,470.
Bitcoin Price Could Slide Below $8,470
In the past couple of analyses, we discussed the importance of the $8,800 resistance for bitcoin against the US Dollar. Recently, BTC price tested the $8,800 resistance, but it failed to continue higher.
A high was formed near $8,800 and the price started declining. It traded below the $8,700 and $8,650 levels. Moreover, there was a break below the 23.6% Fib retracement level of the upward move from the $8,335 low to $8,800 high.
Bitcoin price even settled below the $8,640 level and the 100 hourly simple moving average. There is also a major bearish trend line forming with resistance near $8,640 on the hourly chart of the BTC/USD pair.
It is now testing the $8,560 support, and the 50% Fib retracement level of the upward move from the $8,335 low to $8,800 high. If there is a break below the $8,560 support, the next important support and the last line of defense is near the $8,470 level.
If the bears are able to push the price below $8,470, it is likely to start a substantial decline in the coming session. In the mentioned bearish scenario, bitcoin may perhaps decline towards the $8,200 support level. Any further losses could lead the price towards the $8,000 support.
Bullish Case For BTC
If BTC bulls are able to protect the $8,470 support area, the price could climb higher. The first hurdle is near the trend line at $8,640, followed by the 100 hourly SMA at $8,700.
The main resistance is still near the $8,800 and $8,810 levels. Bitcoin must gain strength above the $8,800 resistance area to start a convincing upward move. The next bullish targets could be $9,200 and $9,250.
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 sliding and it is well below the 50 level.
Major Support Levels – $8,560 followed by $8,470.
Major Resistance Levels – $8,640, $8,700 and $8,800.
