• Bitcoin price topped near the $8,950 level and recently corrected lower against the US Dollar.
• The price declined below the $8,700 and $8,620 support levels to enter a short term bearish zone.
• There is a major bullish trend line forming with support near $8,300 on the hourly chart of the BTC/USD pair (data feed from Kraken).
• The pair must stay above the $8,300 support area to start a fresh increase in the near term.

Bitcoin price started a downside correction below $8,600 against the US Dollar. BTC is likely to test the 100 hourly SMA or $8,300 before it starts a fresh upward move.

Bitcoin Price Analysis

Recently, we saw a solid rise in bitcoin price towards the $9,000 resistance against the US Dollar. The BTC/USD pair traded close to the $8,960 level and formed a new swing high at $8,952. Later, it started a downside correction below the $8,800 and $8,700 levels. There was a break below the 23.6% Fib retracement level of the upward move from the $7,900 low to $8,952 high. Moreover, there was a break below a key declining channel with support near the $8,600 level on the hourly chart.

It opened the doors for more losses towards the $8,425 support. Moreover, the 100 hourly simple moving average is also near the $8,425 support. Finally, the 50% Fib retracement level of the upward move from the $7,900 low to $8,952 high is near the $8,426 level. More importantly, there is a major bullish trend line forming with support near $8,300 on the hourly chart of the BTC/USD pair. Therefore, there are many supports on the downside near the $8,425 and $8,300 levels.

The main support is near $8,300 and the 61.8% Fib retracement level of the upward move from the $7,900 low to $8,952 high. If there is a close below the $8,300 support, the price might extend its decline below the $8,200 and $8,140 support levels. Conversely, if the $8,300 support holds, the price is likely to start a fresh increase. An initial resistance is near the $8,600 level, above which the price might test the $8,710 channel resistance.

Looking at the chart, bitcoin price is clearly correcting lower below $8,600. However, there are many key buy zones near $8,425 and $8,400. As long as the price is trading above the $8,300 support zone, it is likely to complete correction and increase towards $8,700.

Technical indicators:

Hourly MACD – The MACD is currently gaining strength in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD declined recently below the 40 level, with a bearish angle.

Major Support Levels – $8,425 followed by $8,300.

Major Resistance Levels – $8,600, $8,700 and $8,850.

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