There was a nasty decline in bitcoin below the $9,000 support against the US Dollar.The price even declined below the $8,000 support and it is currently consolidating losses.There is a declining channel forming with resistance near $8,350 on the 4-hours chart of the BTC/USD pair (data feed from Kraken).
The price remains at a risk of more losses as long as it is trading below the $8,750 resistance area.Bitcoin price is trading in a downtrend below $9,000 against the US Dollar. BTC is likely to test the $7,500 support or $7,200 before a substantial recovery.Bitcoin Price Weekly Analysis (BTC)This past week, there was a strong decline in BTC below the $10,000 support area against the US Dollar. The BTC/USD pair broke many supports near $9,500 and $9,000 to enter a bearish zone. Moreover, there was a close below $9,000 and the 100 simple moving average (4-hours). Finally, the price broke the $8,000 support and traded to a new monthly low near $7,742.Recently, it started an upside correction above $8,000. Moreover, there was a break above the 50% Fib retracement level of the recent decline from the $8,677 high to $7,742 low.
However, the upward move was capped by the $8,450 level. It seems like the 61.8% Fib retracement level of the recent decline from the $8,677 high to $7,742 low rejected the recovery.Moreover, there is a declining channel forming with resistance near $8,350 on the 4-hours chart of the BTC/USD pair. If there is an upside break above $8,350 and $8,450, the price could recover further. The main resistance on the upside is near the $8,750 level. A successful close above $8,750 and a follow through above $9,000 is needed for a strong recovery in bitcoin in the near term.On the downside, an initial support is near the $7,900 and $7,850 levels. If there is a downside break below the $7,850 support, the price could break the last swing low and continue lower. The main target for the bears could be $7,500. If there are more downsides, the price may perhaps test the $7,200 level.
Looking at the chart, bitcoin price is clearly trading in a bearish zone below the $8,750 and $9,000 resistance levels. It seems like there are chances of more downsides below $7,850 and $7,750. Once the current wave is complete near $7,500 or $7,200, the price could start a strong recovery.
Technical indicators4 hours MACD – The MACD for BTC/USD is struggling to gain strength in the bullish zone.4 hours RSI (Relative Strength Index) – The RSI for BTC/USD is still well below the 40 level, with bearish signs.Major Support Level – $7,850Major Resistance Level – $8,750