Bitcoin Must Break $9,100 To Avoid A Major Downtrend: Here’s Why

Aayush Jindal

1 year ago

2 mins read

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Bitcoin is currently correcting higher from $8,645 against the US Dollar. BTC price needs to clear the $9,100 resistance area to start a strong upward move and avoid a major downtrend.

Bitcoin is facing a couple of key hurdles near the $9,000 and $9,100 levels.
The price must settle above the 100 hourly simple moving average to avert more losses.
There is a key bearish trend line forming with resistance near $9,050 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair could resume its decline below $8,645 if it struggles to clear the $9,100 resistance.

Bitcoin Facing Hurdles

Bitcoin price extended its decline below the $9,000 support against the US Dollar. BTC price even settled below the 100 hourly simple moving average and traded to a new weekly low at $8,645.

It is currently correcting higher and trading above $8,800. The bulls pushed the price above the $8,900 level, but they struggled to clear the $8,975-$9,000 resistance. It seems like the 50% Fib retracement level of the downward move from the $9,307 high to $8,645 low is acting as a resistance.

There is also key bearish trend line forming with resistance near $9,050 on the hourly chart of the BTC/USD pair. The trend line is close to the 61.8% Fib retracement level of the downward move from the $9,307 high to $8,645 low.

Bitcoin

More importantly, the 100 hourly simple moving average is positioned near the trend line and $9,100. If the bulls manage to clear the trend line resistance, 100 hourly SMA, and $9,100, there are chances of a strong upward move.

The next key resistance is near the $9,330 level (a key breakdown zone), above which the price might rise steadily towards the $9,800 and $9,950 resistance levels in the near term.

More Downsides in BTC?

If bitcoin price fails to break the $9,100 resistance and the 100 hourly SMA, it could resume its decline. An initial support on the downside is seen near the $8,800 level.

A downside break below the $8,800 support might push the price towards the $8,650 and $8,500 levels. Any further losses may perhaps open the doors for a larger decline in the coming sessions towards $8,200 and $8,000.

Technical indicators:

Hourly MACD – The MACD is currently losing momentum in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is rising and it is just above the 50 level.

Major Support Levels – $8,800 followed by $8,650.

Major Resistance Levels – $9,000, $9,050 and $9,100.

Aayush Jindal

Aayush Jindal, a luminary in the world of financial markets, whose expertise spans over 15 illustrious years in the realms of Forex and cryptocurrency trading. Renowned for his unparalleled proficiency in providing technical analysis, Aayush is a trusted advisor and senior market expert to investors worldwide, guiding them through the intricate landscapes of modern finance with his keen insights and astute chart analysis.

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