Bitcoin (BTC) Price Recovery Won’t Be Easy Above $10,400
- Bitcoin price is following a negative angle and is trading well below $10,200 against the US Dollar.
- The price is likely setting up for a downside break below the $10,000 support area.
- Yesterday’s highlighted rising channel or a bearish flag is intact with support near $10,050 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The price remains at a risk of a sharp decline below the $10,000 and $9,900 levels in the near term.
Bitcoin price is under a lot of pressure below $10,250 and $10,400 against the US Dollar. BTC price might decline heavily if there is a proper close below $10,000.
Bitcoin Price Analysis
After trading as high as $10,704, bitcoin started a steady decline against the US Dollar. The price broke the $10,500 and $10,400 support levels to move into a bearish zone. Moreover, there was a close below $10,400 and the 100 hourly simple moving average. The price even broke the $10,200 support recently and traded towards the $10,000 support level. A swing low was formed near $10,010 and the price is clearly following a bearish path.
On the upside, an immediate resistance is near the $10,150 level and the 100 hourly simple moving average. Moreover, the 23.6% Fib retracement level of the recent slide from the $10,704 high to $10,010 low is also near $10,175. More importantly, yesterday’s highlighted bearish trend line with resistance near $10,170 is intact on the hourly chart of the BTC/USD pair.
Above the trend line and the 100 hourly SMA, the price could recover towards the $10,400 resistance area. Additionally, the 50% Fib retracement level of the recent slide from the $10,704 high to $10,010 low is also waiting near the $10,350 level to stop an upward move. If there is a break above the $10,350 and $10,400 levels, the price could revisit the main $10,500 resistance level.
On the other hand, if there is no upside break above $10,200, the price could continue to move down. The main support on the downside is near the $10,000 level. A successful close below $10,000 might start a strong decline. The next supports are near $9,900 and $9,800, below which the price could test $9,500.
Looking at the chart, bitcoin price is following a bearish path below $10,200. Therefore, there are high chances of more losses below the $10,000 support. Only a close above $10,200 and a follow through above $10,350 might decrease the current bearish pressure.
Hourly MACD – The MACD is slowly losing momentum in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is rising towards the 50 level.
Major Support Levels – $10,000 followed by $9,800.
Major Resistance Levels – $10,170, $10,200 and $10,400.