Bitcoin is currently consolidating in a broad range below the $9,000 and $9,100 levels.
The main support on the downside is forming near the $8,250 and $8,200 levels.
There is a key connecting bearish trend line forming with resistance near $9,040 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The bulls need to gain momentum above $9,000 and $9,100 for a sustained upward move.
Bitcoin Could Struggle Near $9,000 and $9,100
Yesterday, we discussed a possible push in bitcoin price towards the $9,000 resistance against the US Dollar. BTC price did surge above the $8,800 resistance and tested the $9,000 pivot zone.
There was a break above the 23.6% Fib retracement level of the key decline from the $10,080 swing high to $8,267 low. On the upside, the $9,000 zone acted as a strong resistance and prevented further gains.
Bitcoin price remained well below the 100 hourly simple moving average and topped near the $9,000 level. It even failed to test the 50% Fib retracement level of the key decline from the $10,080 swing high to $8,267 low.
More importantly, there is a key connecting bearish trend line forming with resistance near $9,040 on the hourly chart of the BTC/USD pair. It seems like there is a major hurdle forming for the bulls near the $9,000 and $9,100 levels.
Bitcoin Price
If there is an upside break above the $9,100 resistance and the trend line, there are chances of a sustained upward move. An immediate resistance is near $9,200, above which the price will most likely revisit the $9,500 resistance in the near term.
Breakdown Support
On the downside, there is a crucial support base forming near the $8,250 and $8,200 levels. If bitcoin fails to climb above $9,000, it could revisit the range support at $8,250.
To start another bearish wave, the bears need to clear the $8,250 and $8,200 support levels. The next key support is seen near the $8,000 level, below which there is a risk of a significant decline towards the $7,500 support zone.
Technical indicators:
Hourly MACD – The MACD is about to move into the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently rising towards the 50 level.
Major Support Levels – $8,400 followed by $8,250.
Major Resistance Levels – $9,000, $9,100 and $9,175.