- Bitcoin price spiked above the $8,950 and $9,000 levels, but failed to hold gains against the US Dollar.
- The price declined heavily and traded below the $8,720 and $8,440 support levels.
- There was a break below a crucial bullish trend line with support at $8,560 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair is currently trading in a bearish zone below the $8,300 level and it could continue lower.
Bitcoin price failed near the $9,000 level and declined sharply against the US Dollar. BTC is currently trading in a bearish zone, with a risk of a drop towards the $7,880 support.
Bitcoin Price Analysis
Yesterday, there was an upside extension in bitcoin price above $8,800 against the US Dollar. The BTC/USD pair spiked above the $8,950 and $9,000 levels, but failed to hold gains. As a result, there was a major bearish reaction below the $8,800 level. The price declined heavily below the $8,600 support level and the 100 hourly simple moving average. Moreover, there was a clear break below the 50% Fib retracement level of the upward move from the $7,897 low to $8,960 swing high.
More importantly, there was a break below a crucial bullish trend line with support at $8,560 on the hourly chart of the BTC/USD pair. The pair is currently trading below the $8,200 level and recently tested the 76.4% Fib retracement level of the upward move from the $7,897 low to $8,960 swing high. If there is an upside correction, an initial resistance could be near the $8,400 level. The main resistance might be $8,440, above which the price could revisit the $8,700 level.