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

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.

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