- Bitcoin price is extending losses and it recently broke $8,375 support against the US Dollar.
- The price is currently correcting, but upsides are likely to be capped by $8,500.
- Morning’s key bearish trend line is active with resistance near $8,500 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- Ethereum is still holding the $180 support area and ripple is trading in a range above $0.2520.
Bitcoin price is showing signs of more losses below $8,500 against the US Dollar. BTC could drop towards $8,200 before a decent increase in the near term.
Bitcoin Price Analysis
In morning, we saw a few bearish signs for bitcoin below the $8,660 and $8,700 resistances against the US Dollar. BTC failed to climb above the $8,700 resistance and extended its decline below $8,500.
Moreover, there was a break below the $8,400 and $8,375 support levels. Finally, the price traded to a new weekly and monthly low near $8,343, plus settled well below the 100 hourly simple moving average.
At the moment, the price is correcting higher above the $8,400 level. It is trading close to the 23.6% Fib retracement level of the recent decline from the $8,629 high to $8,343 low.
On the upside, an initial resistance is near the $8,420 level (the recent support). The first major resistance is near the $8,480 level. Additionally, the 50% Fib retracement level of the recent decline from the $8,629 high to $8,343 low is near the $8,480 level.
More importantly, morning’s key bearish trend line is active with resistance near $8,500 on the hourly chart of the BTC/USD pair. Therefore, bitcoin needs to surpass the $8,500 resistance to recover. The next major resistance is near the $8,570 and $8,600 levels.
An intermediate resistance between the first trend line and the second trend line is $8,525 and the 100 hourly simple moving average. A successful close above the 100 hourly SMA and the $8,600 resistance could lead the price towards the $8,660 and $8,700 resistance levels.
Conversely, if the price fails to climbs above $8,500 or $8,600, it might continue to move down. The recent low at $8,343 is a short term support. However, it seems like the bears are eyeing a test of the $8,200 support area, where the bulls are likely to take a stand.
Looking at the chart, bitcoin may perhaps extend its decline below $8,340. Having said that, the bears need to be careful once the price reaches the $8,200 and $8,000 supports.
Technical indicators:
Hourly MACD – The MACD is losing momentum in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently sliding below the 40 level.
Major Support Levels – $8,340 followed by $8,200.
Major Resistance Levels – $8,500, $8,570 and $8,600.
