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- Bitcoin price is extending losses and it traded below the $8,640 support against the US Dollar.
- The price is likely to decline further below the $8,560 and $8,500 support levels.
- Morning’s short term breakout pattern was breached with support near $8,650 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The current price action suggests another breakdown below the $8,550 support area.
Bitcoin price is declining below key supports against the US Dollar. BTC might tumble towards $8,300 or $8,200 once the bears clear the $8,550 and $8,500 supports.
Bitcoin Price Analysis
In morning, we discussed the chances of a downward move in bitcoin below the $8,660 support against the US Dollar. BTC followed a bearish angle and traded below the $8,700 and $8,660 support levels.
Additionally, there was a close below the $8,660 support and the 100 hourly simple moving average. More importantly, morning’s short term breakout pattern was breached with support near $8,650 on the hourly chart of the BTC/USD pair.
The pair retested the $8,560 support area and it is currently consolidating losses. An immediate resistance is near the $8.610 level. It represents the 23.6% Fib retracement level of the recent drop from the $8,785 high to $8,557 low.
The first main resistance on the upside is near the $8,640 level (the previous support area). The next key resistance is near the $8,670 level. Besides, the 50% Fib retracement level of the recent drop from the $8,785 high to $8,557 low is near the $8,670 level.
If there is an upside break above the $8,640 and $8,670 levels, bitcoin price could extend its recovery towards the $8,740 resistance area. Besides, the second crucial hurdle for the bulls is near the $8,740 and the 100 hourly simple moving average.
Therefore, a convincing close above the $8,740 level might push the price towards the $8,800 and $8,880 resistance levels. On the downside, the main support is near the $8,550 and $8,500 levels.
If there is a breakdown below the $8,500 support, the price is likely to accelerate its decline towards $8,300 or $8,200. Having said that, any further losses are unlikely considering the importance of the $8,200 support area.
Looking at the chart, bitcoin is trading near the last key support of the current wave near the $8,550 level. A clear breakdown is likely to spark a strong bearish reaction in the crypto market and major altcoins in the near term.
Technical indicators:
Hourly MACD – The MACD is currently gaining momentum in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now well below 50 level, with bearish signs.
Major Support Levels – $8,550 followed by $8,500.
Major Resistance Levels – $8,640, $8,740 and $8,800.
