Do or Die For Bitcoin Bulls: Here’s What Could Trigger A Sharp Decline 2020-01-23

Aayush Jindal

1 year ago

2 mins read

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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.

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.

From a young age, Aayush exhibited a natural aptitude for deciphering complex systems and unraveling patterns. Fueled by an insatiable curiosity for understanding market dynamics, he embarked on a journey that would lead him to become one of the foremost authorities in the fields of Forex and crypto trading. With a meticulous eye for detail and an unwavering commitment to excellence, Aayush honed his craft over the years, mastering the art of technical analysis and chart interpretation.
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