Bitcoin Price Could Test The $8.3K Support Area Before Recovery
This month, Bitcoin price remained in a bearish zone and declined from the $9,500 resistance against the US Dollar. BTC broke many key supports near the $9,250 and $9,180 levels to enter a bearish zone.
Moreover, there was a break below the $9,070 support and the 55 simple moving average (4-hours). Finally, there was a break below the $8,850 support and the price traded as low as $8,559.
At the moment, the price is correcting higher and is trading above $8,700. Besides, it climbed above the 23.6% Fib retracement level of the downward move from the $9,157 high to $8,559 low.
However, the $8,860 level seems to be acting as a strong resistance. It represents the 50% Fib retracement level of the downward move from the $9,157 high to $8,559 low. More importantly, there is a major bearish trend line forming with resistance near $8,900 on the 4-hours chart of the BTC/USD pair.
Above the trend line, the next resistance is near the $9,000 and $9,020 levels. Besides, the 76.4% Fib retracement level of the downward move from the $9,157 high to $8,559 low is also near the $9,020 area.
The main resistance is near the $9,070 level and the 55 simple moving average (4-hours). Therefore, a successful close above the $9,070 resistance is must for an increase towards $9,500 and $9,800.
Conversely, the price could continue to move down if it fails to surpass $8,860 or $9,000. An immediate support is near the $8,600 level. If there is a bearish break below the $8,600 support, the price could decline towards the $8,300 support area.
Looking at the chart, bitcoin price is trading in a downtrend as long as there is no upside break above the $8,850 and $9,070 resistance levels. On the downside, the bears are likely targeting the $8,300 support area.
4 hour MACD – The MACD is struggling to losing momentum in the bearish zone.
4 hour RSI (Relative Strength Index) – The RSI is currently well below the 50 level, with a bearish angle.
Key Support Levels – $8,600 and $8,300.
Key Resistance Levels – $8,850, $9,000 and $9,070.
Bitcoin Price Could Test The $8.3K Support Area Before Recovery – Source: https://www.livebitcoinnews.com