Bitcoin is attempting to start a fresh increase above $9,000 against the US Dollar. BTC price could either rally above $9,000 or start another decline towards $8,400.
- Bitcoin is facing a major resistance near the $9,000 and $9,020 levels.
- The price is trading above the 100 hourly simple moving average, but struggling to gain momentum.
- There is a crucial bearish trend line forming with resistance near $8,945 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could either start a strong rally above $9,000 or it might dive back to $8,400.
Bitcoin is Approaching Next Key Break
Yesterday, bitcoin failed to stay above the $9,000 level and resumed its decline against the US Dollar. BTC price traded below the $8,800 support and revisited the $8,580 support area, where the bulls took a strong stand.
A new weekly low is formed near $8,533 and the price recently started a fresh increase. There was a break above the $8,800 resistance level and the 100 hourly simple moving average.
Bitcoin price climbed above the 50% Fib retracement level of the downward move from the $9,209 high to $8,533 low. However, the price is facing a strong resistance near the $8,950 and $9,000 levels.
There is also a crucial bearish trend line forming with resistance near $8,945 on the hourly chart of the BTC/USD pair. The pair seems to be struggling to clear the 61.8% Fib retracement level of the downward move from the $9,209 high to $8,533 low.
The main resistance is near the $9,000 region. Therefore, BTC must break the trend line, $8,950, and the $9,000 barrier to start a strong rally in the coming sessions. The next key resistance is near the $9,200 level, followed by the $9,500 weekly resistance.
Downside Spike?
If bitcoin price fails to continue above the trend line resistance and $9,000, there are chances of a fresh decline. An initial support is near the $8,800 level and the 100 hourly SMA.
A successful close below the 100 hourly SMA might start a major decline towards the $8,580 and $8,540 support levels. The price could even spike towards the $8,400 support area before starting a fresh upward move.
Technical indicators:
Hourly MACD – The MACD is about to move back into the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently declining and approaching the 50 level.
Major Support Levels – $8,580 followed by $8,400.
Major Resistance Levels – $8,950, $9,000 and $9,200.
