Bitcoin failed to stay above the $9,500 support and declined more than 5% against the US Dollar. BTC price is now trading in a negative territory and it could slide below $9,000. Bitcoin started a major decline below the $9,500 and $9,350 support levels against the US Dollar. The price is approaching the $9,000 support and remains at a risk of more losses. There is a major bearish trend line forming with resistance near $9,420 on the hourly chart of the BTC/USD pair (data feed from Kraken). The pair is likely to dive towards $8,500 once it breaks the $9,000 support area. Bitcoin Is Plunging Yesterday, we discussed high chances of a big downside correction in bitcoin below $9,500 against the US Dollar. BTC did break the $9,500 support area and extended its decline. Moreover, there was a close below the $9,350 level and the 100 hourly simple moving average. During the decline, there was a break below a bearish continuation pattern with support at $9,225. It opened the doors for more losses below $9,200. Finally, the price traded below $9,100 and formed a new weekly low at $9,087. It is currently consolidating losses, with an immediate resistance near the 23.6% Fib retracement level of the recent decline from the $9,679 high to $9,087 low. On the upside, there are many resistances forming near the $9,350 and $9,400 levels. Additionally, there is a major bearish trend line forming with resistance near $9,420 on the hourly chart of the BTC/USD pair. Bitcoin Price The 50% Fib retracement level of the recent decline from the $9,679 high to $9,087 low is also near the $9,380 level to act as hurdle for bitcoin bulls. Therefore, the price must climb above the $9,380 and $9,400 levels to start a fresh increase. Still, the main resistance is near $9,500, above which the bulls are likely to take over. More Downsides? On the downside, there are a couple of key supports near the $9,000 area. If bitcoin fails to stay above the $9,000 handle, there is a risk of another 5% decline. In the mentioned case, the price is likely to test the $8,500 support area in the coming sessions. Overall, there are many bearish signs emerging and the price could dive further below $9,000. Technical indicators: Hourly MACD – The MACD is now gaining strength in the bullish zone. Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently near the oversold levels. Major Support Levels – $9,000 followed by $8,500. Major Resistance Levels – $9,280, $9,380 and $9,400.
by Aayush Jindal on February 26, 2020 at 10:38AM
by Aayush Jindal on February 26, 2020 at 10:38AM
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