Story by: Aayush Jindal
Bitcoin price started a downside correction from well above the $9,550 area against the US Dollar. BTC broke the key $9,220 support and it is now trading in a short term bearish zone.
- Bitcoin declined recently below the $9,300 and $9,200 levels against the US Dollar.
- The price traded close to the $9,050 level and it is currently correcting higher.
- There is a major bearish trend line forming with resistance near $9,220 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The bulls need to push the price above $9,220 and $9,320 to lift the price back into a positive zone.
Bitcoin Drops Below Key Support
Yesterday, we discussed the chances of more downsides in bitcoin below $9,400 against the US Dollar. BTC did decline recently and traded below the key $9,220 support area.
Moreover, there was a close below the $9,300 level and the 100 hourly simple moving average. Finally, the price traded close to the $9,050 support area and formed a low at $9,079.
It is currently correcting higher and trading above the $9,200 level. Besides, bitcoin is testing the 23.6% Fib retracement level of the recent drop from the $9,609 high to $9,079 low.
More importantly, there is a major bearish trend line forming with resistance near $9,220 on the hourly chart of the BTC/USD pair. Therefore, the pair must climb above the $9,200 and $9,220 levels.
Therefore, a clear break above the $9,345 level is needed for a push towards the $9,500 and $9,600 resistance levels. The next major hurdle is still near the $10,000 level.
Next Key Buy Zones
On the downside, there is a decent support forming near the $9,100 area. The current price action suggests that the price might continue to slide below the $9,100 and $9,000 levels.
If there is a clear break below the $9,000 handle, bitcoin price might slide further. The next major support is seen near the $8,870 and $8,800 levels, where the bulls are likely to take a strong stand.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently rising towards the 50 level.
Major Support Levels – $9,100 followed by $9,000.
Major Resistance Levels – $9,220, $9,320 and $9,345.by