Bitcoin Dives Below Key Uptrend Support: Here’s Why Bears Are Comfortable

Bitcoin started a major decline after it broke the $9,500 support against the US Dollar. BTC is now trading below $9,000 and it remains at a risk of more losses below $8,800.

• Bitcoin is gaining bearish momentum below the $9,500 and $9,200 support levels.
• The price traded as low as $8,813 and it is currently correcting higher.
• There is a crucial bearish trend line forming with resistance near $9,100 on the 4-hours chart of the BTC/USD pair (data feed from Kraken).
• The pair could correct higher, but it is likely to struggle near $9,100 and $9,300.

Bitcoin Turns Bearish

This past week, bitcoin started a major decline after it broke the $9,500 support against the US Dollar. BTC gained bearish momentum below the $9,300 support level and the 100 simple moving average (4-hours).

It opened the doors for more losses and the price even broke the $9,000 support. A new monthly low is formed near $8,813 and the price is currently correcting higher. An initial resistance is near the $9,000 and $9,040 levels.

The 23.6% Fib retracement level of the downward move from the $9,778 high to $8,813 low is also near the $9,040 level. More importantly, there is a crucial bearish trend line forming with resistance near $9,100 on the 4-hours chart of the BTC/USD pair.

Bitcoin price dives below $9,000: Source: TradingView.com

If bitcoin price breaks the trend line resistance, it could continue to recover towards the main $9,300 resistance. The 100 simple moving average (4-hours) is also waiting near the $9,300 resistance area.

Therefore, the bulls are likely to face a lot of hurdles near the $9,100 and $9,300 levels. To move into a positive zone, the price must settle above $9,300 and the 100 SMA.

More Losses in BTC?

If bitcoin struggles to clear the $9,100 and $9,300 resistance levels, there is a risk of more losses. An initial support is near the $8,813 low and $8,800.

A successful bearish break below the $8,800 support zone could open the doors for a larger decline. In the mentioned case, the bears are likely to aim a test of the $8,500 support level in the near term.

Technical indicators

4 hours MACD – The MACD for BTC/USD is gaining pace in the bearish zone.

4 hours RSI (Relative Strength Index) – The RSI for BTC/USD is currently well below the 40 level.

Major Support Level – $8,800

Major Resistance Level – $9,300

Take advantage of the trading opportunities with Plus500

Risk disclaimer: 76.4% of retail CFD accounts lose money.

from NewsBTC https://ift.tt/2NAcWMr
Find The best Lending Program Top CryptocurrencyLending Program