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.
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.
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.
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.