Bitcoin Price (BTC) Tumbles 15%: $8,880 Bearish Target In Sight
Bitcoin price failed to stay above the $11,000 level and resumed decline against the US Dollar.
The price traded below the key $10,000 and $9,800 support levels to enter a bearish zone.
There is a new connecting bearish trend line forming with resistance near $10,060 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The price remains at a risk of more losses below the $9,200 and $9,000 support levels in the near term.
Bitcoin price tumbled around 15% and broke the $9,500 level against the US Dollar. BTC remains at a risk of more losses and it seems like the $8,800 bearish target is still in sight.
Bitcoin Price Analysis
This week, we saw a major decline in bitcoin price below the $10,500 support against the US Dollar. The BTC/USD pair found support near $9,800 and yesterday corrected higher. It climbed above the $10,500 level, but struggled to gain momentum above the $11,000 level. A top was formed near the $11,100 level and the 100 hourly simple moving average. As a result, the price started a fresh decline below the $10,500 support level.
The decline was such that the price broke the $10,000 and $9,800 support levels. Moreover, the price declined close to 15% and traded as low as $9,257. It is currently consolidating above $9,300 and it might correct higher. An immediate resistance is near the $9,680 level plus the 23.6% Fib retracement level of the recent drop from the $11,063 high to $9,257 low. However, the main resistance is near the $10,000 and $10,100 levels.
Moreover, there is a new connecting bearish trend line forming with resistance near $10,060 on the hourly chart of the BTC/USD pair. The 50% Fib retracement level of the recent drop from the $11,063 high to $9,257 low is also near the $10,160 level to act as a strong resistance. Therefore, an upside recovery above the $9,650 level is likely to face a strong resistance near the $10,000 and $10,100 levels.
Conversely, if there is no recovery above $9,650 or $10,000, the price could continue to decline. An immediate support is near the $9,200 level, below which it could even break the $9,000 support zone. The main target could be $8,880 (as discussed in the weekly forecast when the price was well above $10,500).
Looking at the chart, bitcoin price is struggling below $10,000 and it could continue to weaken. However, once the current correction is complete near $8,880 or $8,800, the price may stage a decent recovery.
Hourly MACD – The MACD is about to move back in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is likely to correct higher towards the 40 level.
Major Support Levels – $9,200 followed by $9,000.
Major Resistance Levels – $9,650, $9,800 and $10,000.
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