- Bitcoin price is declining and trading well below the $8,380 pivot zone against the US Dollar.
- The price is consolidating near the $8,000 and facing a lot of hurdles on the upside.
- There is a key bearish trend line forming with resistance near $8,380 on the 4-hours chart of the BTC/USD pair (data feed from Coinbase).
- The pair could correct higher, but sellers are likely to remain active near $8,310 and $8,380.
Bitcoin price is trading in a significant downtrend below $8,500 against the US Dollar. BTC may perhaps continue to move down below $8,000 and $7,600 in the near term.
Bitcoin Price Analysis
In the past few days, there were steady downsides in bitcoin price from well above $9,000 against the US Dollar. BTC traded below many key supports near the $8,500 and $8,400 levels to move further into a bearish zone.
Moreover, there was a break below the $8,380 support and the 55 simple moving average (4-hours). The recent decline was such that the price even tested the $8,000 support area and formed a new monthly low at $7,982.
At the outset, the price is correcting higher above $8,100. It is trading near the 23.6% Fib retracement level of the recent decline from the $8,641 high to $7,982 low. If there is a break above $8,140 and $8,180, the price could continue to correct higher.
The next key resistance is near the $8,310 level since it coincides with the 50% Fib retracement level of the recent decline from the $8,641 high to $7,982 low. The main downtrend resistance for bitcoin price seems to be near the $8,380 level.
Additionally, there is a key bearish trend line forming with resistance near $8,380 on the 4-hours chart of the BTC/USD pair. Therefore, a successful close above the $8,380 and $8,400 levels is needed for a strong recovery in the near term.
Conversely, the price could struggle to correct above $8,180 and $8,380. If it fails to break the $8,380 resistance area, the bears are likely to take over again. An initial support is near the $8,000 area, below which the price is likely to dive towards $7,750 or $7,600.
Looking at the chart, bitcoin price is somehow holding the $8,000 support, but it remains at a risk of more losses. To move into a positive zone, the price must surpass the $8,380 and $8,400 resistance levels.
Technical indicators
4 hour MACD – The MACD is currently losing momentum in the bearish zone.
4 hour RSI (Relative Strength Index) – The RSI is currently correcting higher and is moving towards the 35 level.
Key Support Levels – $8,000 and $7,700.
Key Resistance Levels – $8,310, $8,380 and $8,400.
