- Bitcoin price is currently declining below the $8,600 support area against the US Dollar.
- A new monthly low was formed near $8,457 and the price is currently correcting higher.
- There is a key declining channel forming with resistance near $8,710 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- There is a risk of more downsides as long as the price is below $8,700 and $8,880.
Bitcoin price is gaining bearish momentum below $8,700 against the US Dollar. Therefore, BTC could continue to move down towards the next support near $8,300 and $8,200.
Bitcoin Price Analysis
In the past few sessions, there was a steady decline below the $8,800 level in bitcoin against the US Dollar. BTC broke the $8,750 and $8,700 levels to move further into a bearish zone.
Moreover, there was a break below the $8,600 support area and the price settled well below the 100 hourly simple moving average. Finally, the price broke the $8,550 and $8,500 support levels.
A new monthly low was formed near $8,457 and the price is currently consolidating losses. Besides, it is trading near the 23.6% Fib retracement level of the recent decline from the $8,785 high to $8,457 low.
On the upside, an immediate resistance is near the $8,580 and $8,600 levels. The first key resistance for bitcoin is near the $8,620 level. Additionally, it coincides with the 50% Fib retracement level of the recent decline from the $8,785 high to $8,457 low.
More importantly, there is a key declining channel forming with resistance near $8,710 on the hourly chart of the BTC/USD pair. To move into a positive zone, the price must break the $8,700 and $8,800 resistance levels.
The main resistance is near $8,880, above which the price is likely to accelerate higher towards the $9,000 and $9,200 levels. On the downside, an initial support is near the $8,450 level.
If there is another break down below the $8,450 level, the price may perhaps continue to move down below $8,400. The next major support is near the $8,300 and $8,200 levels, where the bulls are likely to appear.
Looking at the chart, bitcoin is clearly trading in a slow and steady decline below $8,700 and $8,800. Thus, there are high chances of more losses below the $8,500 and $8,450 levels. Conversely, a break above $8,700 might start a decent recovery in the near term.
Technical indicators:
Hourly MACD – The MACD is currently gaining momentum in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently correcting higher, but it is well below 50 level.
Major Support Levels – $8,450 followed by $8,300.
Major Resistance Levels – $8,620, $8,700 and $8,800.
