- Bitcoin price declined and broke a key support level at $8,200 against the US Dollar.
- There was a break below a triangle pattern with support at $8,250 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair may correct a few points in the short term, but it could face resistance near $8,150 and $8,250.
Bitcoin Price Analysis
There was no upside break above $8,500 in bitcoin price against the US Dollar. The BTC/USD pair failed on many occasions to trade above the $8,500 resistance area. There was a sharp bearish reaction and the price declined below the $8,200 and $8,080 support levels. It seems like the price was completely rejected from the 50% Fib retracement level of the leg from the $8,850 high to $8,080 low.
More importantly, there was a break below a triangle pattern with support at $8,250 on the hourly chart of the BTC/USD pair. The pair is now trading well below $8,500 and the 100 hourly simple moving average. The decline was such that the price even spiked below $8,000 and a low was formed at $7,931. At the moment, the price is consolidating losses and moved above the 23.6% Fib retracement level of the drop from the $8,486 high to $7,931 low. However, the price is struggling to move above a connecting bearish trend line with resistance at $8,150.
Looking at the chart, the price may perhaps move above $8,150 in the near term, but it could face a strong barrier near $8,250. Moreover, the 50% Fib retracement level of the drop from the $8,486 high to $7,931 low is a key resistance at $8,209. On the downside, the price must stay above $8,000 to avoid a push towards $7,600.
Looking at the technical indicators:
Hourly MACD – The MACD for BTC/USD is slowly moving back in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI is moving higher towards the 50 level.
Major Support Level – $8,000
Major Resistance Level – $8,250
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