Bitcoin has launched a strong downside correction from the $ 9,945 level against the US Dollar. BTC has tested the $ 8,800 support area and is currently getting better.
- Bitcoin is trading above the $ 8,800 and $ 9,000 support levels.
- The price faces several major hurdles near the $ 9,400 and $ 9,500 levels.
- On the 4-hour chart of the BTC / USD pair there is a large bearish channel formed with resistance near $ 9,560 (data flow from Kraken).
- In order to avoid further damage in the near term, the pair should rise above $ 9,500 and $ 9,560.
Bitcoin Trading Above Basic Supports
Last week, Bitcoin formed a short-term key top just under the $ 10,000 level against the US Dollar. The BTC price rose to $ 9,945 before it started a major decline.
There was a sharp decline below the $ 9,500 and $ 9,250 support levels. The price even broke the $ 9,000 support and fell below the 100 simple moving average (4 hours). He tested the $ 8,800 support level and formed a low of $ 8,806.
Bitcoin price is currently higher and traded above $ 9,000. The 23.6% Fib retracement level of the last drop from $ 9,945 to $ 8,806; dropped to a.
On the upside, there is a major obstacle near the $ 9,400 level and the 100 simple moving average (4 hours). Recently, from $ 9,945 to $ 8,806; The declining 50% Fib retracement level is also close to $ 9,375 to stop the current movement.
More importantly, a huge drop channel is formed with resistance at $ 9,560 in 4 hours. graphic BTC / USD pair. If the pair breaks above the $ 9,400 resistance, it may encounter strong resistance near the $ 9,500 and $ 9,560 levels.
In order to return to a positive zone, the price has to go above $ 9,400 and then over the channel resistance zone. The next key resistance is near the $ 9,800 level and the $ 10,000 level.
If Bitcoin remains $ 9,400 resistance, 100 simple moving averages (4 hours) and $ 9,500 net, there is a greater risk of loss in the near term.
In the case in question, the price is likely to fall below the $ 9,000 support. The main support is near the $ 8,800 level, below which the bears are likely to target a test of the $ 8,400 level.
4 hours MACD – MACD is losing pace in the bullish zone for BTC / USD.
4 hours RSI (Relative Strength Index) – The RSI for BTC / USD is currently near the 45 level.
Major Support Level: $ 9,000
Major Resistance Level – $ 9,500
Risk disclaimer: 76.4% of retail CFD accounts are losing money.