Bitcoin Is Recovering But $9,300 Could Trigger A Fresh Decline

Bitcoin is currently correcting higher from the $8,813 swing low against the US Dollar. BTC is trading above $9,000, but it is facing many hurdles near $9,200 and $9,300.

• Bitcoin started an upside correction after trading to a new monthly low at $8,813.
• The price is recovering nicely and it is trading above the $9,000 level.
• There is a key bearish trend line forming with resistance near $9,260 on the hourly chart of the BTC/USD pair (data feed from Kraken).
• The pair could start a fresh decrease if it fails to settle above $9,200 and $9,300.

Bitcoin Price is Approaching Hurdles

After a strong decline below $9,000, bitcoin price found support near the $8,800 level against the US Dollar. BTC traded to a new monthly low at $8,813 and recently started an upside correction.

There was a break above the $9,000 resistance level. The bulls even pushed the price above a connecting bearish trend line forming with resistance near $9,100 on the hourly chart of the BTC/USD pair.

However, the pair is facing resistance near $9,200 and the 100 hourly simple moving average. A high is formed near $9,190 and the price is currently trading in a range. An initial support is near the 23.6% Fib retracement level of the recent recovery from the $8,813 low to $9,190 low.

Bitcoin price back above $9,000: Source: TradingView.com

On the upside, an initial resistance is near the $9,150 level and the 100 hourly simple moving average. There is also a key bearish trend line forming with resistance near $9,260 on the same chart.

The main resistance is still near the $9,300 level, above which bitcoin price is likely to gain bullish momentum in the coming sessions. The next crucial resistance above $9,300 could be $9,500.

Fresh Drop in BTC

If bitcoin fails to clear the $9,200 and $9,300 resistance levels, it could start a fresh decline. The first key support is near the $9,040 level, followed by the 50% Fib retracement level of the recent recovery from the $8,813 low to $9,190 low.

A successful bearish break and close below $9,000 could start a fresh decrease. In the mentioned bearish case, the price is likely to revisit the $8,813 low of $8,000 in the near term.

Technical indicators:

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

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

Major Support Levels – $9,040, followed by $9,000.

Major Resistance Levels – $9,150, $9,200 and $9,300.

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