Do or Die For Bitcoin Bulls: Here’s What Could Trigger Another Sharp Decline

Aayush Jindal

1 year ago

2 mins read

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Bitcoin started a sharp decline after it failed to continue higher above $9,800 against the US Dollar. BTC is currently testing the $9,200 support, below which it could decline further.

Bitcoin is down more than 4% and it broke the key $9,500 support level.
The price is trading near the $9,200 support and well below the 100 hourly simple moving average.
There is a short-term contracting triangle forming with support near $9,200 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair could either correct a few points or it might decline further below $9,000.

Bitcoin Price Nosedives 4%

Yesterday, bitcoin price struggled to clear the $9,700 and $9,800 resistance levels against the US Dollar. BTC topped just below the $9,800 level and recently started a sharp decline.

It broke the $9,540 and $9,500 support levels to move into a bearish zone. The bears took over the crypto market and the price tumbled below $9,300. There was also a close below the $9,300 level and the 100 hourly simple moving average.

Bitcoin tested the $9,200 support level and traded as low as $9,204. It is currently consolidating losses and trading in a range above the $9,200 support. It seems like there is a short-term contracting triangle forming with support near $9,200 on the hourly chart of the BTC/USD pair.

Bitcoin price dives 4%: Source: TradingView.com

If there is an upside break above the triangle resistance at $9,280, the price could test the 23.6% Fib retracement level of the recent decline from the $9,662 swing high to $9,204 low.

The first major resistance is near the $9,400 level, followed by the 50% Fib retracement level of the recent decline from the $9,662 swing high to $9,204 low. To move into a positive zone, the price must surge above the $9,500 resistance zone and the 100 hourly simple moving average.

More Losses in BTC

On the downside, bitcoin is finding strong bids near the $9,200 support level. If the bulls fail to defend the $9,200 support, there could be another sharp decline in the near term.

The next major support is seen near the $9,000 level, below which the bears are likely to aim a test of the $8,800 support zone. Any further losses might call for a push towards $8,500.

Technical indicators:

Hourly MACD – The MACD is slowly moving in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now well below the 40 level.

Major Support Levels – $9,200, followed by $9,000.

Major Resistance Levels – $9,300, $9,400 and $9,440.

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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In a world where uncertainty reigns supreme, Aayush Jindal stands as a guiding light, illuminating the path to financial success with his unparalleled expertise, unwavering integrity, and boundless enthusiasm for the markets.

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