After there was a failed attempt near $8,830, bitcoin price started a major decline below $8,500. BTC to USD broke the key $8,050 support level to move into a short term downtrend.
Key Takeaways: BTC/USD
- Bitcoin price started a major downward move below the $8,300 and $8,050 support levels against the US Dollar.
- BTC/USD is facing major hurdle near $8,200 and a bearish trend line on the 2-hours chart (data feed from Bitstamp).
- Ethereum, ripple, and bitcoin cash are also showing a lot of bearish signs.
Bitcoin Price Analysis
After forming a top near the $8,830 level, there was a significant downward move in bitcoin price below $8,500. BTC declined below the key $8,050 support area and settled below the $8,000 handle.
Looking at the 2-hours chart, bitcoin declined heavily and even cleared the $7,750 support area. There was a push below the $7,500 level and the price traded to a new weekly low at $7,432.
Recently, the price recovered above $7,600 and $7,700. There was a break above the 23.6% Fib retracement level of the recent drop from $8,829 to $7,432.
However, there are many hurdles on the upside near the $8,050 and $8,200 level. There is also a major bearish trend line forming with resistance at $8,150 on the same chart. The 50 simple moving average (2-hours, purple) is also near the $7,150 level to prevent gains.
Finally, the 50% Fib retracement level of the recent drop from $8,829 to $7,432 is also near the trend line to act as a solid hurdle.
Therefore, a successful close above the $8,150 and $8,200 levels is needed for more gains. The next key resistance is near the $8,320 level, above which there are chances of a fresh increase towards the $8,500 level.
Conversely, if bitcoin price fails to move above $8,150, there could be a sharp decline in the coming sessions. On the downside, an initial support is near the $7,680 level, below which bitcoin price could accelerate below the $7,400 swing low in the coming days. The next stop for sellers might be near the $7,210 level.