Bitcoin Broke A Key Technical Pattern It’s Vulnerable to a Drop Toward $8K

Bitcoin is struggling to gain bullish momentum above $9,200 against the US Dollar. BTC price is currently declining and it could continue to slide towards $8,400 or $8,200. Bitcoin is facing an increase in selling pressure below $9,200 and $9,000. The price is trading below the 100 hourly simple moving average and it could dive towards $8,400. There is a key bearish trend line forming with resistance near $8,900 on the hourly chart of the BTC/USD pair (data feed from Kraken). The pair could correct in the short term, but it is likely to continue lower towards $8,400 or $8,200. Bitcoin is Facing Hurdles After a sharp downside correction, bitcoin found support above the $8,400 level against the US Dollar. BTC price recovered nicely above $8,800 and $9,000, but it faced a strong selling interest near the $9,200 level. A high is formed near $9,201 and the price is currently declining. It broke a key bullish trend line with support at $8,980 on the hourly chart to enter a bearish zone. BTC even settled below the $8,900 level and the 100 hourly simple moving average. Bitcoin Price A low is formed near $8,629 and the price is currently attempting an upside correction. Bitcoin is trading near the 23.6% Fib retracement level of the recent slide from the $9,201 high to $8,629 low. On the upside, an initial resistance is near the $8,900 level and the 100 hourly simple moving average. There is also a key bearish trend line forming with resistance near $8,900 on the same chart. The trend line coincides with the 50% Fib retracement level of the recent slide from the $9,201 high to $8,629 low. If there is a successful close above the trend line, 100 hourly SMA, and the $9,000 resistance, the price could recover further. The main resistance is near the $9,200 level, above which the bulls are likely to aim a test of the $9,500 resistance in the near term. Downside Thrust Conversely, bitcoin price might continue to move down below the $8,700 level. An initial support is near the $8,600 level, below which the price could dive towards the $8,400 support. If the bulls fail to protect the $8,400 support, there is a risk of a larger downside thrust towards the $8,200 level or the $8,000 handle in the near term. Technical indicators: Hourly MACD – The MACD is showing negative signs in the bearish zone. Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently close to the 40 level. Major Support Levels – $8,400 followed by $8,200. Major Resistance Levels – $8,900, $9,000 and $9,200.

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