Analysis

Bitcoin Trading Near Last Line of Defense: Can Bulls Save the Day?

Bitcoin failed to climb above the $ 9,300 resistance and extended its decline against the US Dollar. BTC is currently showing bearish signs and it might struggle to stay above the $ 9,000 support.

  • Bitcoin declined below the $ 9,120 support and traded close to the $ 9,000 support.
  • The price is currently recovering, but it is facing a lot of hurdles near $ 9,150.
  • There is a crucial bearish trend line forming with resistance near $ 9,150 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair must clear the $ 9,150 and $ 9,200 resistance levels to start a decent upward move.

Bitcoin Price is Showing Bearish Signs

In the past few sessions, bitcoin followed a bearish path below the $ 9,300 resistance against the US Dollar. BTC traded below the $ 9,200 support level and the 100 hourly simple moving average.

It even broke the $ 9,120 support level and traded towards the $ 9,000 level. A low is formed near the $ 9,022 level and the price is currently correcting higher. There was a break above the $ 9,100 level. The bulls pushed the price above the 23.6% Fib retracement level of the recent decline from the $ 9,275 high to $ 9,022 low.

On the upside, the $ 9,150 level seems to be acting as a strong resistance. There is also a crucial bearish trend line forming with resistance near $ 9,150 on the hourly chart of the BTC/USD pair.

Bitcoin

Bitcoin price below $ 9,200: Source: TradingView.com

The trend line coincides with the 50% Fib retracement level of the recent decline from the $ 9,275 high to $ 9,022 low. Therefore, the price must clear the trend line resistance to recover towards the $ 9,200 resistance or the 100 hourly simple moving average.

The main resistance on the upside is still near the $ 9,300 level, above which the bulls are likely to aim a strong rally in the coming sessions.

More Losses in BTC

If bitcoin price fails to recover above the $ 9,150 and $ 9,200 resistance levels, it could resume its decline. The first support on the downside is near the $ 9,000 level.

The main uptrend support is near the $ 8,800 level and the 100-day SMA (as discussed yesterday). A successful break below the $ 8,800 support may perhaps start a sustained downward move.

Technical indicators:

Hourly MACD – The MACD is likely to move back into the bearish zone.

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

Major Support Levels – $ 9,020, followed by $ 9,000.

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

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Analysis – NewsBTC

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