Bitcoin (BTC) Price Hesitates But Further Downsides Seem Likely

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  • Bitcoin price is consolidating losses above the $8,000 support area against the US Dollar.
  • The price is likely to struggle near the $8,150 and $8,220 resistance levels.
  • There is a key rising channel or a bearish flag pattern forming with support near $8,060 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • An upside correction towards the $8,220 and $8,280 levels could face a solid selling interest.

Bitcoin price is consolidating losses with corrective moves against the US Dollar. However, BTC remains sell on rallies if it climbs towards $8,220 and $8,280.

Bitcoin Price Analysis

After a nasty decline, bitcoin found support near the $8,000 level against the US Dollar. BTC traded as low as $7,990 and it is currently consolidating losses well below the 100 hourly simple moving average.

There was a corrective wave above the $8,080 and $8,100 levels. Moreover, the price spiked above the $8,150 resistance level. Though, the price struggled to stay above the 23.6% Fib retracement level of the downward move from the $8,630 high to $7,990 low.

At the outset, the price is trading near $8,100, with an immediate resistance near the $8,150 level. Additionally, the next key resistance is near the $8,200 and $8,220 levels, above which bitcoin could test the $8,300 resistance area.

An intermediate resistance is near the $8,280 level and the 100 hourly simple moving average. To move into a positive zone, the price must settle above the $8,300 resistance and the 100 hourly SMA.

Besides, the 50% Fib retracement level of the downward move from the $8,630 high to $7,990 low is also near the $8,310 level to act as a resistance.

Conversely, the price could struggle to climb above the $8,150 and $8,220 resistance levels. On the downside, an initial support is near the $8,060 level. More importantly, there is a key rising channel or a bearish flag pattern forming with support near $8,060 on the hourly chart of the BTC/USD pair.

Therefore, a downside break below the channel support near $8,060 will most likely push the price further lower. Finally, a bearish break below the $8,000 support area could open the doors for a drop towards the $7,400 support area (the next bearish target as discussed in the recent medium term outlook).

Bitcoin Price

Looking at the chart, bitcoin price is likely forming anther breakdown pattern with support near $8,060 and $8,000. On the other hand, the bulls need to gain momentum above $8,220 and $8,300 to negate the current bearish view.

Technical indicators:

Hourly MACD – The MACD is struggling to move into the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently flat below the 50 level.

Major Support Levels – $8,060 followed by $8,000.

Major Resistance Levels – $8,150, $8,220 and $8,300.

The post Bitcoin (BTC) Price Hesitates But Further Downsides Seem Likely appeared first on NewsBTC.



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