Bitcoin at Potentially Significant Turning Point: $9,000 Holds The Key

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Bitcoin declined sharply after it faced a strong rejection near $9,200 against the US Dollar. BTC is still holding the $9,000 support, below which there is a risk of a sustained decline.

  • Bitcoin fell sharply below $9,000, but it recovered quickly from the $8,914 swing low.
  • The price is now facing a major resistance near $9,100 and the 100 hourly simple moving average.
  • There is a crucial bearish trend line forming with resistance near $9,120 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair could either rally above $9,100 or it might start another decline below $9,000.

Bitcoin Price Still Holding $9,000

In yesterday’s weekly analysis, we discussed the chances of a sharp decline in bitcoin if it fails to clear $9,200 against the US Dollar. BTC remained in a bearish zone and it fell significantly below the $9,100 and $9,000 levels.

The price even spiked below the $8,950 level and traded to a new weekly low at $8,914. However, there was no daily close below $9,000 and the price recovered sharply. It surged above the $9,000 level, plus surpassed the 50% Fib retracement level of the recent decline from the $9,194 high to $8,914 low.

BTC is currently facing a major resistance near $9,100 and the 100 hourly simple moving average. There is also a crucial bearish trend line forming with resistance near $9,120 on the hourly chart of the BTC/USD pair.

Bitcoin

Bitcoin price still holding $9,000: Source: TradingView.com

The trend line coincides with the 76.4% Fib retracement level of the recent decline from the $9,194 high to $8,914 low. Therefore, a successful break above the $9,100 resistance and $9,120 is must for a fresh increase.

The next immediate resistance is near the $9,180, above which the bulls are likely to aim a sustained upward move towards the $9,500 resistance region in the coming sessions.

Fresh Decrease in BTC?

If bitcoin fails to clear the $9,100 and $9,120 resistance levels, it could start another decrease. The main support on the downside is near the $9,000 level.

A daily close below the $9,000 support zone will most likely open the doors for a sustained downward move towards the $8,800 support or $8,500 in the near term.

Technical indicators:

Hourly MACD – The MACD is currently gaining pace in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now well above the 50 level.

Major Support Levels – $9,000, followed by $8,800.

Major Resistance Levels – $9,100, $9,120 and $9,180.