- Bitcoin price extended its declined and broke the key $10,800 support level against the US Dollar.
- The price even broke the last swing low and a major support area near the $10,500 level.
- There is a key bearish trend line forming with resistance near $10,650 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The price remains in a strong target and it seems like the $8,880 bearish target seems real.
Bitcoin price started a fresh decline below the $10,800 support against the US Dollar. BTC is currently correcting higher, but the $10,800 level is likely to act as a sell zone.
Bitcoin Price Analysis
In the past few days, there were heavy losses in bitcoin price below the $11,000 support against the US Dollar. The BTC/USD pair even broke the key $10,800 support area to extend its decline. Finally, there was a break below the last swing low and a major support area near the $10,500 level. The price settled below the $10,800 level and the 100 hourly simple moving average. A swing low was formed near the $9,784 level and the price is currently correcting higher.
More importantly, it seems like the $8,880 bearish target (as discussed in the weekly forecast) is now in sight. In the short term, there could be an upside correction above $10,200. The price is currently trading near the 23.6% Fib retracement level of the recent drop from the $11,466 high to $9,785 low. However, there are many resistance levels on the upside near the $10,500 and $10,600 levels.
Moreover, there is a key bearish trend line forming with resistance near $10,650 on the hourly chart of the BTC/USD pair. The 50% Fib retracement level of the recent drop from the $11,466 high to $9,785 low is just below the trend line. The main resistance is near the $10,800 level (the previous support area). To start a strong recovery, the price must settle above $10,800 level.
On the downside, an immediate support is near the $10,000 level, below which the price may retest the $9,780 level in the near term. If there are more losses, the price may continue to slide towards $9,500 and $9,200.
Looking at the chart, bitcoin price is clearly in a downtrend from the $13,200 yearly swing high. If the bears remain in action, it seems like the $8,880 bearish target (as discussed in the weekly forecast) could be test in the coming days.
Technical indicators:
Hourly MACD – The MACD is likely to move back in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is still well below the 40 level.
Major Support Levels – $10,000 followed by $9,750.
Major Resistance Levels – $10,500, $10,620 and $10,800.
