Bitcoin failed to continue above the $9,200 resistance and it is down more than 4% against the US Dollar. BTC is now trading in a bearish zone and it could slide further below $8,700.
- After forming a short term top near $9,211, bitcoin price declined sharply below $8,880.
- The price is now trading well below $9,000 and the 100 simple moving average (4-hours).
- There is a crucial bearish trend line forming with resistance near $9,122 on the 4-hours chart of the BTC/USD pair (data feed from Kraken).
- The pair is likely to extend its decline below the $8,700 and $8,600 levels in the near term.
Bitcoin Turns Bearish Again
This past week, bitcoin started a steady rise above the $8,700 and $8,880 resistance levels against the US Dollar. BTC price gained traction and it even managed to climb above the key $9,000 resistance.
However, the bulls faced a strong resistance near the $9,200 area and the 100 simple moving average (4-hours). There is also a crucial bearish trend line forming with resistance near $9,122 on the 4-hours of the BTC/USD pair.If the bulls fail to protect the $8,700 support level, there is a risk of another decline. An initial support is near the $8,600 level, below which there is a risk of a drop towards the $8,400 support area.