Bitcoin Trading Near Last Line of Defense: Can Bulls Save the Day?

Bitcoin

Bitcoin failed to climb above the $9,300 resistance and extended its decline against the US Dollar. BTC is currently showing bearish signs and it might struggle to stay above the $9,000 support.

Bitcoin Price is Showing Bearish Signs

In the past few sessions, bitcoin followed a bearish path below the $9,300 resistance against the US Dollar. BTC traded below the $9,200 support level and the 100 hourly simple moving average.

It even broke the $9,120 support level and traded towards the $9,000 level. A low is formed near the $9,022 level and the price is currently correcting higher. There was a break above the $9,100 level. The bulls pushed the price above the 23.6% Fib retracement level of the recent decline from the $9,275 high to $9,022 low.

On the upside, the $9,150 level seems to be acting as a strong resistance. There is also a crucial bearish trend line forming with resistance near $9,150 on the hourly chart of the BTC/USD pair.

Bitcoin price below $9,200: Source: 

The trend line coincides with the 50% Fib retracement level of the recent decline from the $9,275 high to $9,022 low. Therefore, the price must clear the trend line resistance to recover towards the $9,200 resistance or the 100 hourly simple moving average.

The main resistance on the upside is still near the $9,300 level, above which the bulls are likely to aim a strong rally in the coming sessions.

More Losses in BTC

If bitcoin price fails to recover above the $9,150 and $9,200 resistance levels, it could resume its decline. The first support on the downside is near the $9,000 level.

The main uptrend support is near the $8,800 level and the 100-day SMA (as discussed yesterday). A successful break below the $8,800 support may perhaps start a sustained downward move.

Technical indicators:

Hourly MACD – The MACD is likely to move back into the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is struggling to move above the 50 level.

Major Support Levels – $9,020, followed by $9,000.

Major Resistance Levels – $9,150, $9,200 and $9,300.

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