After another upward move, bitcoin price faced a strong selling interest near the $9,100 level. BTC to USD formed a swing high at $9,102 before starting a significant downward move below $8,500.
Key Takeaways: BTC/USD
- Bitcoin price started a sharp decline after trading to a new multi-month high at $9,102 against the US Dollar.
- BTC/USD traded below the key $8,500 support and a bullish trend line on the 2-hours chart (data feed from Bitstamp).
- Ethereum, ripple, and bitcoin cash also followed the same structure and declined heavily.
Bitcoin Price Analysis
Yesterday, there was another rally in bitcoin price above the $8,800 level. BTC price broke a major bearish trend line at $8,800 and even rallied above the $9,000 handle. The price traded towards the $9,100 level, where sellers emerged.
Looking at the 2-hours chart, bitcoin formed a swing high at $9,102 before it started a nasty downward move. It broke the $8,800 and $8,700 support levels to enter a bearish zone.
There was also a close below the $8,620 level and the 50 simple moving average (2-hours, purple). Moreover, there was a break below the key $8,500 support and a bullish trend line on the same chart.
It opened the doors for more losses and the price spiked below the $8,140 and $8,000 supports. A new intraday low was formed at $7,999 before the price started consolidating losses. It is currently trading in a range near the 23.6% Fib retracement level of the recent drop from $9,102 to $7,999.
If there is an upside correction, the price could test the $8,500 or $8,550 resistance levels. The main resistance is near the 50% Fib retracement level of the recent drop from $9,102 to $7,999.
To start a fresh bullish wave, the price must settle above the $8,550 resistance and gain pace above the 50 simple moving average (2-hours, purple). Conversely, if there is a downside break below $8,140 and $8,000, bitcoin price could trade towards the next key support at $7,900.
Overall, BTC moved into a short term bearish zone and it might struggle as long as there is no close above $8,550.