- Bitcoin price is down more than 12% and it recently broke the $8,500 support against the US Dollar.
- The price is currently correcting higher, but the $8,750 and $8,800 levels are preventing recovery.
- There is a crucial bearish trend line forming with resistance near $9,500 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The price is likely to resume its decline as long as it is below $8,750 and $9,000.
Bitcoin price nosedived below $9,000 and tested $8,050 against the US Dollar. BTC remains at a risk of more downsides as long as it is below $9,000.
Bitcoin Price Analysis
Yesterday, we saw a breakdown in bitcoin below the $10,000 support area against the US Dollar. The price remained in a bearish zone and broke many supports near $9,800 and $9,500. Moreover, there was a break below the $9,000 support and the 100 hourly simple moving average. Finally, the price traded close to the $8,000 level and registered a nasty decline. A low was formed near $8,055 and the price is currently correcting higher.
There was a break above the $8,250 and $8,400 levels. Moreover, the price traded above the 23.6% Fib retracement level of the recent decline from the $9,779 high to $8,055 low. However, the $8,750 level is acting as a strong resistance. The next resistance is near the $8,920 level. It coincides with the 50% Fib retracement level of the recent decline from the $9,779 high to $8,055 low.