Bitcoin (BTC) Price Primed For Breakdown Below $8K
Bitcoin price is extending its decline below the $8,250 resistance area against the US Dollar.
The price is likely to decline below the $8,000 and $7,800 support levels in the near term.
There is a major bearish trend line forming with resistance near $8,150 on the hourly chart of the BTC/USD pair (data feed from Kraken).
There are many bearish signs on the chart, suggesting a drop below $8,000.
Bitcoin price is facing an uphill task near $8,200 and $8,400 against the US Dollar. Therefore, BTC is likely to decline further below the $8,000 support area.
Bitcoin Price Analysis
This week, there were further losses in bitcoin below the $8,200 support area against the US Dollar. BTC extended its decline below the 100 hourly simple moving average and even tested the $8,000 support area.
A new monthly low was formed near $7,987 and the price is currently correcting higher. It traded above the $8,100 level and tested the $8,150 resistance area.
Furthermore, the price tested the 23.6% Fib retracement level of the recent decline from the $8,631 high to $7,987 low. However, the price seems to be facing a strong resistance near the $8,150 and $8,200 levels.
More importantly, there is a major bearish trend line forming with resistance near $8,150 on the hourly chart of the BTC/USD pair. If there is an upside break above the $8,200 resistance, bitcoin price could recover towards the $8,300 level.
The 50% Fib retracement level of the recent decline from the $8,631 high to $7,987 low is near the $8,300 area to act as a resistance. The next major resistance is now near the $8,400 level (the previous breakdown support).
It also coincides with the 61.8% Fib retracement level of the recent decline from the $8,631 high to $7,987 low. An intermediate resistance is near $8,360 and the 100 hourly simple moving average.
On the downside, an initial support is near the $8,000 area. If there is a daily close below $8,000, the price could even break the $7,800 support. Besides, the next key support is near the $7,400 level (as discussed in yesterday’s medium term outlook using the daily chart).
Looking at the chart, bitcoin price is facing resistance near the $8,150 and $8,200 levels. Thus, there is a risk of more downsides below $8,000. To start a decent recovery, the price must settle above $8,200 and then gain momentum above the $8,300 resistance.
Hourly MACD – The MACD is losing pace in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently moving lower towards the 30 level.
Major Support Levels – $8,000 followed by $7,800.
Major Resistance Levels – $8,150, $8,200 and $8,300.
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