- Bitcoin price is currently declining and it recently failed to surpass the $8,660 resistance against the US Dollar.
- The price is now trading well below the key $8,400 and $8,300 support levels.
- There is a declining channel forming with resistance near $8,300 on the 4-hours chart of the BTC/USD pair (data feed from Coinbase).
- The pair is likely to extend its decline as long as there is no upside break above $8,300 and $8,400.
Bitcoin price is signaling more downsides below $8,200 against the US Dollar. BTC could revisit the $7,700 support unless there is a break above $8,300 and $8,400.
Bitcoin Price Analysis
This past week, bitcoin price climbed higher nicely above the $8,400 resistance area against the US Dollar. Moreover, the BTC/USD pair surpassed the $8,550 resistance and the 55 simple moving average (4-hours). Finally, the price spiked above the $8,660 resistance, but it failed to retain bullish momentum. A swing high was formed near $8,823 and recently the price started a downside correction.
There was a break below the $8,550 and $8,400 support levels. Additionally, the price traded below the 50% Fib retracement level of the upward move from the $7,758 low to $8,823 high. Besides, the price is now trading below the $8,300 level and the 55 simple moving average (4-hours). At the moment, the price is testing the $8,150 support. It coincides with the 61.8% Fib retracement level of the upward move from the $7,758 low to $8,823 high.
More importantly, there is a declining channel forming with resistance near $8,300 on the 4-hours chart of the BTC/USD pair. If there is a downside break below the $8,150 support and $8,100, bitcoin price could accelerate losses. An immediate support is near $8,000 and the 76.4% Fib retracement level of the upward move from the $7,758 low to $8,823 high.
Any further losses are likely to push the price towards the $7,700 support area. On the upside, there is a strong resistance forming near the $8,300 level and the 100 SMA. A successful close above the $8,300 and $8,400 levels is must for the price to move into a positive zone.
Looking at the chart, bitcoin price is struggling to hold gains above $8,100 and $8,000. Therefore, there are chances of an extended decline below the $8,000 support. The main support is near $7,700, followed by $7,550. On the upside, a break above $8,400 could push the price towards the $8,800 and $9,000 resistance levels.
Technical indicators
4 hour MACD – The MACD is showing negative signs the bearish zone.
4 hour RSI (Relative Strength Index) – The RSI is currently well below the 50 level, with a bearish angle.
Key Support Levels – $8,000 and $7,700.
Key Resistance Levels – $8,350, $8,400 and $8,500.
