Bitcoin declined sharply against the USD 10,000 resistance against the US dollar. BTC is currently correcting higher and it seems the bulls are likely to push the price back above $ 9,000 again.
- Bitcoin found support above key pivot levels of $ 8,200 and $ 8,000.
- A low is formed at $ 8,267 and the price is currently correcting higher.
- The hourly chart of the BTC / USD pair (Kraken data feed) shows a short-term downward trend line with resistance close to USD 8,800.
- It looks like an inverted head-and-shoulders pattern is forming with resistance close to $ 8,800.
Bitcoin could rise again
After a strong rally, the Bitcoin price was unable to stabilize above the USD 10,000 resistance against the US dollar. The BTC price started a nasty drop below the $ 9,000 support and the simple 100-hour moving average.
The bears were able to push the price below the $ 8,500 support, but found support above the key pivot levels of $ 8,200 and $ 8,000. A low is near the $ 8,267 level and the price is currently correcting higher.
There was a pause above the USD 8,500 resistance level. Bitcoin is now trading above the 23.6% fib retracement level of the downward move from the high of $ 10,078 to the low of $ 8,267. On a positive note, the $ 8,800 level is a major hurdle to further profits.
It looks like an inverted head-and-shoulders pattern is forming with resistance close to $ 8,800. More importantly, the hourly chart of the BTC / USD pair forms a short-term bearish trendline with resistance close to $ 8,800.
In the short term, there could be a slight dip to form the right near the $ 8,550 zone. To start a sustained upward trend, the price must eliminate the trendline resistance at $ 8,800.
The next major resistance is near the $ 9,100 and $ 9,150 levels. The 50% fib retracement level of the downward move from the high of $ 10,078 to the low of $ 8,267 could also pose a hurdle near $ 9,175 in the short term.
If bitcoin price does not remove the $ 8,800 resistance, it could resume falling below the $ 8,600 and $ 8,550 levels. The first major support is near the $ 8,200 level.
The next big support is waiting near the $ 8,000 level (as discussed in the weekly analysis). If there is a bearish closing price below $ 8,000, the price could trigger another significant drop towards $ 7,500.
Hourly MACD – The MACD is currently moving well in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC / USD is currently approaching 50.
Major support levels – $ 8,600, followed by $ 8,550.
Major resistance levels – $ 8,800, $ 9,000 and $ 9,175.