Bitcoin (BTC) Price Recovery Could Fade, Fresh Decrease Likely
- Bitcoin price started an upside correction after trading as low as $9,483 against the US Dollar.
- The price is facing a strong resistance near the $10,350 and $10,400 levels.
- There is a major bearish trend line forming with resistance near $10,290 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The price is likely to resume its decline as long as it is trading below the $10,500 resistance.
Bitcoin price is facing many hurdles on the upside near $10,400 against the US Dollar. BTC price is likely to extend its decline below the $10,000 and $9,950 supports.
Bitcoin Price Analysis
There was a downside extension in bitcoin price below the $9,600 and $9,500 levels against the US Dollar. The BTC/USD pair traded as low as $9,483 and settled well below the 100 hourly simple moving average. Recently, the price started an upside correction above the $9,500 and $9,800 levels. Moreover, there was a break above the key $10,000 resistance area.
The price even climbed above the $10,200 resistance and traded close to the $10,500 level. A swing high was formed near $10,439 and the price is currently declining. It seems like the price is forming a strong resistance near the $10,300 and $10,400 levels. An immediate support is near the $10,000 level. The 50% Fib retracement level of the recent recovery from the $9,483 low to $10,439 high is also a decent support near $9,960.
The next key support is near the $9,850 level. It represents the 61.8% Fib retracement level of the recent recovery from the $9,483 low to $10,439 high. If there is a downside break below the $9,850 support, bitcoin price is likely to resume its decline. In the mentioned bearish case, the price could revisit the $9,500 and $9,480 levels. Any further losses might push the price towards the $9,220 level.
On the upside, an immediate resistance is near the $10,250 level. Moreover, there is a major bearish trend line forming with resistance near $10,290 on the hourly chart of the BTC/USD pair. If there is an upside break above the trend line and the $10,400 resistance, the price could recover further in the near term.
Looking at the chart, bitcoin price seems to be facing a strong resistance near the $10,300 and $10,400 levels. If it continues to struggle near $10,250 and $10,400, there are chances of more downsides below $10,000 and $9,850 in the coming sessions.
Hourly MACD – The MACD is slowly moving back into the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently declining below the 50 level.
Major Support Levels – $9,960 followed by $9,850.
Major Resistance Levels – $10,250, $10,300 and $10,400.